Buy MCX February Gold, Sell March Silver futures in evening trade as pressure seen in bullion

The positive outlook on the US economy coupled with US Federal Reserve Chairman Jerome Powell’s commentary on inflation, and US Dollar movement triggered easing in the price of Gold. However, concerns around Omicron though mitigated the impact.

The domestic prices of Gold and Silver took cues from their foreign peers and were trading in the red around 6 pm on Thursday. The February Gold Futures were trading at Rs 47,745 per 10 gram on the MCX around this time and were down by Rs 127 or 0.27 per cent from the Wednesday closing price.

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Meanwhile, the March Silver futures were trading at Rs 61,263, down by Rs 44 or 0.07 per cent from the last closing price.

Technical Analyst Anuj Gupta remains positive on Gold futures aided by the uncertainties around the new variant. Two cases of Omicron have been reported in India according to the information revealed by the Ministry of Health and Family Welfare.

Gupta, who is Vice President (VP), Commodity and Currency Research at IIFL Securities said that the sluggishness in Silver was n the back of a lower industrial demand.

He recommended a buy on February Gold futures at Rs 47,700 with a stop loss at Rs 47,400 and the price target of Rs 48,300.

As for March Silver futures, sell is recommended at Rs 61,800 with a stop loss of Rs 62,300 and target of Rs 60,500.

Meanwhile, brokerage firm Motilal Oswal sees the yellow metal futures to trade with a negative bias. The support is seen between Rs 47,450 and Rs 47,200 while resistance is seen between Rs 48,000 and Rs 48,200.

The Silver futures are also expected to trade with a negative bias, the report said. It sees resistance between Rs 61,700 and Rs 62,200 while support at Rs 60,600 and Rs 60,200.

The February Gold Futures were trading at USD 1779.2 on CME, down by almost USD 5. The support is seen between USD 1765 and Rs 1750 while resistance is seen between Rs 1790 and Rs 1800, the Motilal Oswal report said.

March Silver Options were trading at USD 22.41, up 0.7 per cent.

Support for Spot Silver is seen between USD 22.20 and USD 22 while resistance is seen between USD 22.60 and USD 22.80, the report further said.