Gold futures opened down on Thursday at ₹47,789 per 10 grams for MCX February Futures, lower by ₹83 from the previous close of ₹47,872. Even as the coronavirus variant Omicron continued to be a concern in the country, stronger equities markets are pushing investors away from the safe-haven asset.

Silver opened flat but slipped into negative territory. The most active contract, MCX Silver March Futures, traded at ₹61,284, down by ₹23 in the opening trade on Thursday.

India’s economic capital Mumbai imposed additional measures such as mandatory RT-PCR test for all flight arrivals, irrespective of vaccine status. This comes even as there is currently no known case of the Omicron variant in the country. As per reports, so far about 24 countries have confirmed the presence of the Omicron variant.

Are there sunny times ahead for gold?

Fast Four Bullion

1. International gold under pressure as Omicron spreads

CME Gold December Futures last quoted at $1,779.4 oz (oz is equal to about 28.3 grams), after hitting an intra-day low of $1,768.7. The US confirmed its first case of the Omicron variant on Wednesday, triggering fresh concerns about its spread in the country. Precious metals remained on edge after the US Central Bank — Federal Reserve — indicated it will discuss whether to end bond purchases a few months earlier than anticipated. The most active futures contract, CME Silver March Futures, was last quoted at $22.405 an oz. Silver hit an intra-day low of $22.185 — the lowest since October 1.

Gold demand losing sheen

2. MCX Gold tumbles by ₹1,750 from peak

MCX Gold weakened further on Thursday after losing ₹168 to trade at ₹47,704 for the February contract. Gold extended losses amid uncertainty over the spread of the new coronavirus variant.

Silver extended its slide to trade at ₹61,123 a kg, down ₹184, in the opening session on Thursday. MCX Silver March Futures has lost ₹2,091 within a week, from ₹63,792 quoted on November 25.

3. Spot gold, silver extend weakness

Spot gold lost by ₹659 in five trading sessions to last quote at ₹47,807 per 10 grams on Wednesday, as quoted by India Bullion and Jewellers Association (IBJA). Spot silver was quoted at ₹62,069 a kg. Silver prices have fallen by ₹1,543 in the past five trading sessions, from ₹63,612 quoted on November 26.

4. Outlook

Sustained recovery in the equities markets from a knee-jerk reaction to the emergence of the Omicron variant has encouraged investors to turn to riskier assets. Analysts expect bullions to remain on slippery ground. However, the yellow metal gets support from the lingering concerns around Omicron. But the broader range is expected to be 47,502-48,232 for the day. Silver price is expected to be in the range of ₹60,234-63,208 for the day as the dollar found support in renewed expectations for interest rate hikes.

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