Gold Futures opened higher on Friday as Omicron fears persisted. MCX Gold February Futures was up ₹224 at the opening on Friday at ₹47,625 per 10 grams as against the previous close of ₹47,401.

MCX Silver Futures for March contract opened in positive territory at ₹61,175 a kg with marginal gains of ₹52 but scaled up soon after the opening to make steady gains.

India reported its first two cases of the Omicron variant on Thursday. The two persons included an individual from Bengaluru without having a travel history. This triggered speculations about the wider presence of the virus, which is feared to be more infectious than even the Delta variant.

Fast Four Bullion

1. International Gold found support at USD 1770

Even as uncertainty prevailed over the possible economic impact of the new variant Omicron's spread across countries, investors preferred riskier assets over gold, keeping gold prices under check. CME Gold Futures for most active February contract on Thursday hit the lowest levels since November 3 to close at USD 1762.2 an oz (oz is equal to approximately 28.3 grams). The prices, however, recovered in the initial trades on Friday to the last quote at USD 1773.8. Analysts maintained that the gold prices held above USD 1771 on Friday after prices eased on Thursday.

The most active CME Silver March Futures was last quoted at 22.395 an oz. Silver hit an intra-day low of USD 22.215 on Thursday.

2. MCX Gold firm but on a slippery ground

Despite making early gains on Friday, MCX Gold remained on the slippery ground by losing nearly ₹2,000 from the peak levels of ₹49,510 on November 17. MCX Gold February contract was last quoted at ₹47,597, with open interests of 10,428 lots.

MCX Silver Futures strengthened further Friday to trade at ₹61,278, up 0.25% from the previous close. Open interest in the contract stood at 12,992 lots.

3. Spot gold, silver weak amidst uncertainty

Spot gold lost ₹500 in two days extending the weakness in the yellow metal. The India Bullion and Jewellers Association (IBJA) quoted that spot gold prices at ₹47601 per 10 grams (999 purity) on Thursday.

Spot silver was last quoted at ₹60,789 a kg (999 purity) on Thursday, falling by ₹1,266 in two days from ₹62,055 quoted on November 30.

4. Outlook

Equities markets continued a steady uptrend, indicating revived investor confidence for the riskier assets. Analysts expect bullion to remain under pressure, but the downside is contained with the spread of the new variant - Omicron. Gold prices are expected to hover between ₹47,045-₹48,011, while the silver outlook suggests price to remain range-bound between ₹60,389-₹61,847.

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