Gold Price Today, 4 January 2022: MCX gold down 15% from all-time highs, silver 26%; is it right time to buy?

Gold Rate Today, Gold Price in India on 4 January 2022: Gold prices gained in India on Tuesday, following the international prices.

Gold Rate Today, Gold Price Today in India
Analysts say that gold and silver traded lower on account of sharp rise in US Dollar and US Treasury yields.

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices gained in India on Tuesday, following the international prices. On the Multi Commodity Exchange, gold February futures were trading Rs 77 up at Rs 47,793 per 10 gram, as against the previous close of Rs 47,716. Silver March futures were ruling weak at Rs 61,650, down Rs 91, as against the last close of Rs 61,741 per kg. MCX gold prices delivered a negative return of over 4 per cent, and MCX silver fell over 8 per cent in CY2021. Even on the first trading day of CY22, gold and silver traded lower on the back of sharp rise in US Dollar and US Treasury yields. 

What’s denting bullion’s appeal?

Analysts say that gold and silver traded lower on account of sharp rise in US Dollar and US Treasury yields. US Dollar hit one month high against Yen because of rise in US Treasuries as traders bet on an early Federal Reserve interest rate hike despite surging COVID-19 cases. Also the equity market was trading higher suggesting investor’s risk aversion. Money markets have fully priced in a first U.S. rate increase by May, and two more by the end of 2022, Bhavik Patel, Commodity & Currency analyst, Tradebull Securities, told Financial Express Online.

Is it the right time to buy gold and silver?

At the current levels, MCX gold is 15 per cent or Rs 8,398 per 10 gram off from its record high level of Rs 56,191 per 10 gram hit in August 2020. While MCX silver plunged 26.4 per cent or Rs 16,299 per kg from its all-time high of Rs 77,949 per kg. Bhavik Patel believes gold and silver will see some more downside as they were unable to surpass their resistance. “Gold should be accumulated around 47000 levels while silver should be accumulated around 60000 levels. We would recommend to wait for some correction before buying,” Patel added.

Anuj Gupta, VP — Research, Commodity & Currency, IIFL Securities believes that despite an over 4 per ent negative return, long-trend of gold seems to be up. MCX gold has a strong support at 47000. “We recommend to buy gold around Rs 46800-47000 with the stop loss of 46200 levels for the target of 48500 levels. Wait for more corrections to buy as dollar index strengthening,” Gupta advised. He also added that investment demand and inflationary pressure may support gold prices going forward.

Amid rising dollar, the yellow metal may fall during the intraday, said another analyst. Treasury yields and equity indexes rose as risk appetite returned to markets. Investors remain optimistic that Omicron would not derail the economic recovery as the number of deaths and hospitalisations from the new COVID-19 variant are comparatively low. “From an investment perspective, one can start buying slowly in tranches. While traders must wait for a dip around Rs 47,100 per 10 gram,” Jigar Trivedi, Manager — Non-Agro Fundamental Research, Anand Rathi Shares & Stock Brokers, told Financial Express Online.

What do technical charts say for MCX gold and silver?

Technically, precious metals are trading in a range. Gold has a trading range of 48350-47570, where it has immediate support at 47520-47530 coincides with its 200 SMA level, said an analyst. “A sell-on rise to be followed if it breaks 47500 level as it may continue its sell-off till 47200-47100 zone whereas positive momentum is expected only when it manages to trade and closes above 48400 level. Silver is also trading in a narrow range of 61200-62300, if it breaks the critical support of 61200 then it may test the levels of 60000 which will be a good buying zone whereas selling can be done at the levels of 62300,” Abhishek Chauhan, Head of Commodity & Currency, Swastika Investmart, told Financial Express Online.

MCX Gold seen at Rs 49000 by January-end

Ravi Singh, VP & Head of Research, ShareIndia Securities told Financial Express Online that gold is in cycle of making higher high and higher low from the swing of Rs 47800 levels indicating the inherent strength in the counter on daily chart, in the recent past, after clocking a high of Rs 48280 levels. The overall chart structure of the counter looks bullish from the current levels and is witnessing a bounce from the support zone of Rs 47500 levels, Singh added. “This may trigger a fresh round of buying to take the gold up to Rs 48800-49000 levels till January-end, 2022. On the Bollinger Band (20,2), the gold price is trading above the mean with the upper band facing in the upward direction indicating the price to move higher. On the oscillator side, RSI (14) is trading in a comfortable zone indicating the intact bullishness in the gold. We expect gold to continue its outperformance in coming trading days as well and may move towards Rs 49000. Any correction towards the recent support of Rs 47500 may be utilised to average the positions,” Ravi Singh, said.

(The views in this story are expressed by the respective experts of the research and brokerage firm. Financial Express Online does not bear any responsibility for their advice. Please consult your investment advisor before investing.)

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