Gold rate today: Yellow metal tops Rs 48,300 on weaker dollar

NEW DELHI: Gold prices edged higher on Thursday on a weaker US dollar. Although, renewed risk appetite fuelled by an encouraging Omicron study and increased optimism around the global economic outlook kept gains in check.

A South African study suggested reduced risks of hospitalization and severe disease in people infected with the Omicron variant versus the Delta one.

Gold futures on MCX added 0.22 per cent or Rs 107 at Rs 48,306 per 10 grams. Silver futures gained 0.19 per cent or Rs 109 to Rs 62,309 per kg.

Gold prices were trading steady on a weaker dollar and US Treasury yields and amid rising fear of Omicron outbreak, said Ravi Singh, Vice President & Head of Research, ShareIndia.

“The demand for gold during this season has also fueled the rally. The safe-haven appeal against the rising inflation and the uncertainty over the Omicron is keeping gold in its bullish zone,” he added.

Physical gold demand in India showed a modest improvement this week as some buyers rushed to stores anticipating a further rise in domestic prices, while customers in other Asian hubs started bullion shopping for Christmas.

In the spot market, the highest purity gold was sold at Rs 48,105 per 10 grams while silver was priced at Rs 61,520 per kg on Wednesday, according to the Indian Bullion and Jewellers Association.

The spot price of gold has declined about 600 per 10 grams in the current week so far, while silver has shed about Rs 300 per kg, but remained above Rs 61,000 during the period under review.

“Weaker dollar along with Omicron fear pushed gold higher. Although traders packing up for long holiday may cap the gains,” said Vidit Garg, Director, MyGoldKart.

Trading strategy
“We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,790 per ounce and resistance at $1,833 per ounce. MCX Gold February support lies at Rs 47,900 and resistance at Rs 48,500 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.

Global markets
Spot gold was little changed at $1,806.85 per ounce by 0218 GMT. U.S. gold futures were up 0.3% at $1,808.20. The metal was set for a second weekly gain at 0.5%.

Spot silver was up 0.1% at $22.80 an ounce, platinum rose 0.3% to $968 and palladium fell 0.7% to $1,868.94.