Amid risk-on sentiment, gold prices were trading at five and a half month low, while silver was trading at nine-week low.
Modern Plc has applied for approval of COVID-19 vaccine, therefore, the upside in the yellow metal is limited
Gold prices in India started trading firm on the first day of December, after falling nearly 6 per cent in the previous month. On MCX, gold February futures were trading Rs 172 or 0.36 per cent higher at Rs 48,090 per 10 gram while silver March futures were ruling at Rs 60,955 per kg, up Rs 733 or 1.22 per cent. Yesterday, the trading in the commodity market started in the evening as it was shut in the morning on the occasion of Guru Nanak Jayanti. Gold prices crashed by Rs 2,859 or 5.63 per cent in the month of November on MCX. Analysts expect short covering in gold to continue for this week. As the US will release ISM manufacturing PMI later in the day, the dollar is expected to be volatile.
Jigar Trivedi, Fundamental Research Analyst, Anand Rathi Shares and Stock Brokers said that since Modern Plc has applied for approval of COVID-19 vaccine, the upside in the yellow metal is limited. “Even Joe Biden’s transition is happening smoothly hence positionally we recommend to go short on rise. For the short term, once can go long,” Trivedi added.
Bhavik Patel, Senior Technical Research Analyst at Tradebulls Securities, told Financial Express Online that amid risk-on sentiment gold prices were trading at five and a half month low. While silver was trading at nine-week low as there was no geopolitical hotspot which could lift prices of precious metals. “The outlook for 2021 is neutral as we are no longer bullish in the short term but long term, it’s another story and we continue to remain bullish because of ultra low-interest-rate environment and increasing inflation in many of the countries,” said Bhavik Patel. Other asset classes like the equity markets are also stretched leading to some correction in the near future which may help gold in gaining as some cash rotation from equity asset to bullion may be seen to hedge the portfolio.
Navneet Damani, VP, Motilal Oswal Financial Services said that the broader trend on COMEX could be in the range of $1770-1800 and on the domestic front, prices could hover in the range of Rs 47,850-48,300. Globally, the spot gold rose 0.1 per cent to $1,778.76 per ounce, while US gold futures were little changed at $1,780.50. Among other metals, silver gained 0.2 per cent to $22.64 per ounce, while platinum rose 0.4 per cent to $968.78 and palladium was down 0.1 per cent at $2,370.63.