09 Dec , 2021 By : Kanchan Joshi
Gold prices in India traded in a narrow range today as futures on MCX dipped 0.07% to Rs48,023, extending losses to the second day. Silver futures were off 0.05% to Rs61,590. In global markets today, gold was steady at at $1,782.65 per ounce as stronger US dollar and firmer US bond yields weighed on the precious metals. The dollar index strengthened 0.1% against a basket of six major currencies, weighing on bullion by raising its cost to buyers holding other currencies while US Benchmark 10-year Treasury yields were hovering close to their highest level in nearly 2 weeks.
Gold traders will be keenly watching the US Consumer Price Index (CPI) due tomorrow.
Among other precious metals, spot silver fell 0.2% to $22.34 an ounce while platinum dropped 0.2% to $954.51.
“Spot gold is flat as yields climbed due to vaccine update weighed against Omicron spread while concerns over a potential Russian threat to Ukraine supported metals. Technically, it's in a juncture where breakout is the only way forward for clear direction and till then we can play range of $1,774 -$1,796," said Vidit Garg, director at MyGoldKart. Breakout below $1,760 or above $1,800 will provide further direction, he added.
Pfizer Inc. and BioNTech SE said initial lab studies show a third dose of their Covid-19 vaccine may be needed to neutralize the omicron variant. Pfizer will have data telling how well its vaccine prevents infections with the omicron before the end of the year, Chief Executive Officer Albert Bourla said, adding he expects a third booster dose will “do the job" in restoring high levels of protection.
Meanwhile, analysts say that the global equity rally will be tested until there is more clarity on the omicron variant’s threat to the economy, and ahead of U.S. consumer inflation numbers this week and a Federal Reserve meeting next week that may provide clues on the pace of tapering and interest rate increases.
Reduced stimulus and interest rate hikes tend to push government bond yields up, raising the opportunity cost of bullion, which bears no interest.
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