Finishing off the final session of 2021, Gold prices saw a rise in the global market. According to Economic Times, Gold futures on Multi Commodity Exchange (MCX) gained 0.11 per cent or Rs 55 at Rs 47,940 per 10 grams, while silver futures increased by 0.15 per cent or Rs 96 at Rs 62,256 per kilogram. This week, the highest purity gold was sold at Rs 47,798 per 10 grams, while silver was priced at Rs 61,133 per kg on Thursday.
However, market watchers are anticipating the yellow metal to perform its worst in six years. Speaking to LiveMint, Ravindra Rao, VP- Head Commodity Research at Kotak Securities, said, “Gold continues to trade within the $1780-1820/oz range seen for the last few days amid lack of fresh cues and lower trade volumes due to year-end holidays.Gold may remain choppy trade reflecting a larger market however higher yields may keep prices under pressure.”
Gold prices exhibited an impressive run up in 2020 when they reached a record high of Rs 56,200 on the MCX in August. Currently, the prices of the yellow metal are down about Rs 9,000 from those levels. After weak jobless claims data and mixed global cues, the yellow metal underwent a revival in prices. US Treasury yields observed a fall, increasing the bullion’s appeal by reducing its opportunity cost.
According to LiveMint, Kotak Securities has predicted that in the near term, market can expect to see turbulent trade reflecting the larger financial market amid lower year-end trading participation. But hopefulness about the US economy and Fed’s tightening expectations, US dollar may be supported which will further keep pressure on gold prices.
Tapan Patel, Senior Analyst (Commodities), HDFC Securities, told Economic Times that it is expected that the gold prices will trade sideways to up for the day with COMEX Spot gold support at $1,800 and resistance at $1,833 per ounce.
Gold price has declined by four percent so far this year. This comes at a time when economies are reeling from the pandemic’s impact, reducing yellow metal’s demand in the market.
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