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Gold prices were choppy in the first trading day of 2022 while silver dropped. On MCX, gold futures edged 0.04% lower to 48,082 per 10 gram while silver slipped 0.3% to 62,480 per kg.  In global markets, gold dipped as investors assessed potential risks from the omicron Covid-19 variant while awaiting key US jobs data due later in the week. 

Spot gold slipped 0.3% Monday to $1,823 an ounce. Spot silver was flat at $23.27 an ounce while platinum rose 1.76% to $979.

“Expect a choppy with mild positive bias as long as it gold stays above $1820. However a direct drop below $1790 would weaken the sentiments. For silver, a break below the support of $21.20 short term outlook will turn to bearish. Else, choppy trading is on cards," Geojit Financial Services said in a note. 

In 2021, gold fell 3.6% in global markets  in its biggest annual decline since 2015 as central banks started to dial back pandemic-era stimulus to fight inflation. 

Despite surging coronavirus cases, deaths and hospitalisations from the Omicron variant are comparatively low, leading many governments to stop short of lockdowns.

Nish Bhatt, Founder & CEO, Millwood Kane International, said: “After two stellar years of returns, gold prices underperformed most asset classes in CY21. Gold rose to all-time high levels in 2020 due to the uncertainties posed by the COVID19. The prices came off highs as countries started relaxing lockdown and re-opening for regular business activities. Inflows into equities meant a lot of funds flowing out of Gold ETFs." 

"Gold attracts investment in a low-interest rate regime, the current rising interest rate scenario will continue to put pressure on the yellow metal. Interest rates, inflation, and the manner in which countries control the new variant will guide gold prices for a good part of 2022," he added. (With Agency Inputs)

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