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Gold Price Today Jumps Above Rs 48,100 as Covid Variant Omicron Scare Boosts Demand

By: Anulekha Ray

News18.com

Last Updated: November 29, 2021, 10:17 IST

Newly found Covid-19 variant Omicron had boosted the precious metal's appeal

Newly found Covid-19 variant Omicron had boosted the precious metal's appeal

Gold price today, November 29, 2021: On MCX, February gold contracts were up 0.38 percent to Rs 48,140 for 10 grams at 0925 hours on Monday

Gold price in India edged higher on Monday as concerns over the impact of newly detected Covid-19 variant in South Africa had boosted the precious metal’s appeal. On the Multi-Commodity Exchange (MCX), February gold contracts were up 0.38 percent to Rs 48,140 for 10 grams at 0925 hours on Monday. Silver futures rose 0.97 per cent to Rs 63,575 a kilogram.

With new cases of omicron coronavirus variant found in more places, several countries had imposed travel restrictions to protect themselves. Spot gold rose 0.1 per cent to $1,793.72 per ounce by 0201 GMT. US gold futures advanced 0.4 per cent to $1,793.2, according to Reuters.

“International spot gold prices have started in the green this Monday morning in Asian trade. Technically, LBMA Gold has bounced back from $1780 level indicating a marginal upside momentum up to $1805-$1810 levels. Support is at $1788-$1775 levels,” said Sriram Iyer, senior research analyst at Reliance Securities.

“Domestic gold prices could start with gains this Monday morning, tracking a positive start in overseas prices. Technically, if MCX Gold February trades above Rs 47,800 level, it will continue its negative trend up to Rs 48,100-48,300 levels. Resistance is at Rs 47,850-47,000 levels,” Iyer added. The demand for physical gold picked up in India, thanks to a dip in prices and improvement in purchases during wedding season.

“Nymex crude oil prices have plunged to a nearly two-month low of $72.60 a barrel, US Treasury bond and note prices are soaring (yields dropping) on the news. The yield on the US Treasury 10-year note is presently fetching 1.521 per cent, well down from 1.64 per cent seen on Wednesday. Gold prices are sharply higher on safe-haven demand. The other key outside market today sees the US dollar index solidly lower. Bitcoin prices are sharply down and have lost over 11 per cent Friday,” said Amit Khare, AVP-research commodities, Ganganagar Commodity Limited.

“We are seeing profit booking in bullions since las 5-6 trading sessions. Now the current levels are the best prices for short term investors. As per technical chart overall structure of gold and silver are looking positive, Momentum indicator RSI also indicating the same in hourly chart and trading at oversold zone. So short term investors are advised to create fresh longs for in small dips near given support levels, traders should focus important technical levels given below for the day: February Gold closing price Rs 47,960, Support 1 – Rs 47,700, Support 2 – Rs 47,500, Resistance 1 – Rs 48,170, Resistance 2 – Rs 48,350. March Silver closing price Rs 62,965, Support 1 – Rs 62,450, Support 2 – Rs 61,800, Resistance 1 – Rs 64,000, Resistance 2 – Rs 65,000,” Khare added.

“Gold prices is taking support on account of new and possibly vaccine resistant Covid variant detected in South Africa and few other Asian countries. Global economies are already facing high inflation and economic bottlenecks and still in revival mode. In this scenario, if situation worsens or new lockdown imposed globally then we may see a rebound in Gold prices. Buy Zone Above – Rs 47,700 for the target of Rs 48,000. Sell Zone Below – Rs 47,300 for the target of Rs 47,000,” said Ravi Singh, head of research & vice president at ShareIndia.

“Technically $1787 & $1800 are in no trading zone while prices are below major moving averages, while RSI is showing some upside divergence signalling range bound movement. For the day use any bounce till $1810 to sell the metal for target of $1788,” said Vidit Garg, director, MyGoldKart.

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first published:November 29, 2021, 09:37 IST
last updated:November 29, 2021, 10:17 IST