On the first trading day in 2022, there was a lot of volatility in the prices of gold. On the other hand, there was a decline in silver. MCX Gold Futures is down 0.04 per cent at Rs 48,082 per 10 grams. On the other hand, silver is seen falling 0.3 percent at 62,480 per kg.
There is also a fall in the prices of gold in the global market. Investors seem to be guessing the impact of the Omicron variant of COVID-19. Meanwhile, Americans are also eyeing job data coming out later this week.
On Tuesday, gold fell 0.3 per cent to $ 1,823 an ounce in the spot market. On the other hand, silver was seen flat at $ 23.27 an ounce in the spot market, while platinum is seen rising by 1.76 percent at $ 979.
Geojit Financial Services In one of its notes, it has said that as long as gold remains above $ 1820, then it will be seen trading with a mild positive trend. However, if gold slips below $1790, then there will be further weakness in it. On the other hand, if silver goes below its support of $21.20, then it will fall further in the short term.
Significantly, in 2021, gold has seen a decline of 3.6 percent in the global market, which is its biggest annual fall since 2015. The central banks are gradually pulling back the relief measures taken during the Corona epidemic to deal with inflation, which is having an impact on gold prices.
Despite the increase in corona cases, the number of deaths and hospitalizations due to the Omicron variant is relatively low, due to which measures like widespread lockdown are not being taken in all the countries of the world.
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Millwood Kane International K Nish Bhatt Says that after 2 years of excellent returns, gold has underperformed in comparison to other asset classes in the year 2021. Gold touched an all-time high in 2020 due to problems related to COVID-19. With the improvement in the situation of Corona, normal business activities started and with the lifting of lockdown by all the countries of the world, the prices of gold showed a decline. With the improvement in the conditions, the flow of money out of gold was seen going into equity. Due to which the prices of gold have come under pressure.
He further said that gold becomes an attractive investment option in times of low interest rates. Now as soon as the interest rates increase. By the way, the pressure on gold will be seen increasing. The condition and direction of gold in 2022 will depend on the condition of interest rates. At what level does inflation remain and how successful are the governments of the world in dealing with the new variant of Corona.
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