After closing lower tracking weak overseas price on Thursday, domestic gold on Friday started on a positive note. India Gold MCX February futures were trading higher despite US unemployment claims beating the expectations and rose significantly. On Friday around 9.40 am, the precious yellow metal traded higher by Rs 170 to Rs 47,571 per gram after closing at Rs 47,401 on the Multi Commodity Exchange on Thursday.  

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"COMEX gold trades modestly higher near $1771/oz after a sharp 1.2% decline yesterday. Gold trades near 1-month low weighed down by increased expectations that Fed may fasten the pace of bond tapering to curb rising inflation," said Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities.  

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Gold prices slipped to 4-week lows at the COMEX division on Thursday. Gold February futures contract settled at Rs 47,401 per 10 gram with a loss of 0.98% and silver March futures contract settled at RS 61,123 per one kilogram with a loss of 0.30%.  

"Gold and silver prices dip on Thursday after U.S. unemployment claims data. The U.S. Labour Department said that weekly jobless claims rose by 28,000 to 2,22,000. Jobless claims beat the economist's expectations of 2,38,000 claims," said Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research.

Technical check

Jain said he expects both the precious metals to remain volatile and could find support at lower levels. At MCX, gold has support at 47220-47000 and resistance at 47580-47770. Silver finds support at 60800-60500 and resistance at 61660-62200. "We suggest buying in silver around Rs 61,000 with a stop loss of Rs 60,500 for the target of Rs 62,000," he added.

International spot gold and spot silver prices fell on Thursday on bets hawkish Fed tilt may rein in high inflation, said Sriram Iyer, Senior Research Analyst at Reliance Securities

Domestic gold, silver and bullion Index ended down on Thursday, tracking weak overseas prices.  

The Fed’s recent policy shift i.e. increased bets on early interest rate hikes and the idea that inflation fears are going to be falling weighed on bullion, said the analyst.  

"The recent fall in crude oil prices could help on the inflation side of things. Rising cases of the Omicron variant globally continued to drive volatility across markets, however gold traders were more focussed on inflation and the Fed. Investors will await the nonfarm payroll number due tonight. Apart from the jobs data, the PMI numbers in Europe and the U.S. could also drive the markets tonight," said Jain

Technical Check:
If MCX Gold February trades below 47,500 level, it could continue its negative trend up to 47,223-47,045 levels. Resistance zone is at 47705-48010 levels.  
Similarly, if MCX Silver March trades below 61,120 level, it could witness a bullish momentum up to 60756-60389 levels. Resistance zone is at 61485-61847 levels.