Gold Prices on Wednesday remained steady after some correction amidst thin trade in the international market. Gold contracts slipped by 0.19 per cent and traded at 47,949 for 10 grams on the Multi Commodity Exchange (MCX) at 9.59 am on December 29. Silver flutes also showed a similar trend and fell by 0.14 per cent and traded Rs 62,425 for a kilogram, reported Money Control. Experts predict that the concerns around the new Omicron variant of the coronavirus and the rising inflation will support the precious metal’s prices in 2022.
Abhishek Chauhan, Head of Commodity & Currency at Swastika Investment, said that the gold prices remained low in the initial phase of 2021 as it was an overbought zone. However, as the year progressed, gold prices recovered by around Rs 6,000 per gram from the low of Rs 43,300 because of the heavy demand on the domestic jewellery market.
Looking at the current situation, Chauhan backed gold to move over the mark of Rs 54,000 in 2022. He said that prices of essential commodities are on the rise again due to the supply chain interruption caused by the pandemic and that may aid safe heaven demand eventually.
Sharing his assessment, Ravi Singh, Vice President & Head of Research at Share India, said that the upcoming weeks are going to be very crucial for gold prices. The yellow metal is currently trading in a tight range amid low volumes and is most likely to remain in consolidation mode. However, as the new year celebration fuel, the concerns around the Omicron variant and countries assess the need for restriction, any fresh trigger could be an upper breakout for the gold prices. Sing suggested a buy zone over the Rs 48, 100 mark with a target of Rs 48, 300 and a sell zone of Rs 47,800 with a target of Rs 47,600
Amit Khare, AVP- Research Commodities, Ganganagar Commodity advised investors to look for profit booking and then create a fresh sell position.
Khare suggested a gold closing price of Rs 48,042 with support at Rs 47,900 and Rs 47,800 and resistance of Rs 48,225, Rs 48,400.
While the trading advice is based on experts’ assessment of the market situation, investors are advised to understand the risk factors before investing their hard-earned money.
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