NEW DELHI: Gold prices traded in the tight range on Wednesday as higher US Treasury yields and improved risk appetite countered concerns about the rapidly spreading Omicron coronavirus variant.

Gold futures on MCX added 0.06 per cent or Rs 29 at Rs 48,096 per 10 grams. Silver futures gained 0.16 per cent or Rs 96 to Rs 61,901 per kg.

“Gold is trading in a tight range as global shares rose, with European and US stocks rebounding on renewed risk appetite, despite the surging number of Omicron cases around the world,” said Ravi Singh Vice President & Head of Research, ShareIndia.

Physical gold demand in India showed a modest improvement this week as some buyers rushed to stores anticipating a further rise in domestic prices, while customers in other Asian hubs started bullion shopping for Christmas.

In the spot market, the highest purity gold was sold at Rs 48,311 per 10 grams while silver was priced at Rs 61,659 per kg on Tuesday, according to the Indian Bullion and Jewellers Association.

The spot price of gold has been able to hold above Rs 48,000 per 10 grams for the last 7 sessions, whereas it has been hovering around Rs 61,500 lately.

Trading strategy
“We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1,780 and resistance at $1,800 per ounce. MCX Gold February support lies at Rs 47,800 and resistance at Rs 48,400 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.

Global markets
Spot gold was little changed at $1,789.12 per ounce by 0126 GMT. U.S. gold futures also remained unchanged, at $1,789.50.

Spot silver was down 0.1% at $22.47 an ounce, platinum shed 0.3% to $931.99 and palladium was up 0.2% at $1,795.17.