Buy MCX February Gold futures, March Silver futures, analyst recommends as near-term outlook remains positive amid new Covid-19 variant outbreak

Gold Price Today: The emergence of new coronavirus variant Omicron strengthened the cause of yellow metal as the world is once again grappling with fears of a derailed global recovery. Analyst Anuj Gupta said that haven bullion could see a higher traction among investors in the immediate to near term unless future clarity comes on this new South African variant.

Gold has also gained from the weakness of US Dollar as most top currencies weakened in the backdrop of the virus. The Dollar Index held at 96.10 on Monday after witnessing a 0.7 per cent drop on Friday, a Reuters report said. The movement in Gold price is inversely proportional to the US Dollar strength.

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On MCX, the December Gold and Silver futures were trading with a positive bias. The December Gold futures were up almost 0.60 per cent or Rs 282 from the Friday closing price and were trading at Rs 47,867 per 10 grams. Meanwhile, the December Silver Futures were also dearer by Rs 736 or 1.2 per cent and were trading at Rs 62,781 per kg.

Gupta, who is Vice President (VP), Commodity and Currency Research at IIFL Securities, recommends a buy on February Gold futures at Rs 47,700 with a stop loss of Rs 47,400 and a price target of Rs 48,300. February Futures were trading at Rs 48,255, up by Rs 295 or 0.62 per cent.

As for March Silver futures, buying was recommended at Rs 62,500 with a stop loss at Rs 62,000 and target of Rs 63,300. March Futures were trading at Rs 63,665 around this time, up by Rs 700 or 1.1 per cent.

Brokerage firm Motilal Oswal sees support between Rs 48,000 and Rs 47,870 for the February Gold Futures while resistance between Rs 48,270 and Rs 48,420. The yellow metal futures are expected to trade with a positive bias. Buying is advised, the report said cautioning bias to negate below support levels.

International spot price of Gold is expected to see support between USD 1780 and USD 1765 while the resistance at USD 1807-1820.

MCX March Silver futures have resistance at Rs 63,800 while support between Rs 63,300 and RS 63,050. Buying is advised resistance with a price target between Rs 64,070 and Rs 64,250.

International spot price of Silver is expected to see support between USD 23.20 and USD 23 while the resistance at USD 23.65-23.85.

(Disclaimer: The views/suggestions/advices expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)