Russia-Ukraine war, spike in oil prices to push yellow metal higher

Russia-Ukraine war, spike in oil prices to push yellow metal higher

Gold prices went flat on March 3 in the internaonal markets as risk appete improved aer the US Federal Reserve chairman tried to assuage fears about aggressive interest rate hikes, offseng safe-haven demand spurred by the Russia-Ukraine conflict.

On the Mul-Commodity Exchange (MCX), gold contracts were up 0.54 percent at Rs 51,570 for 10 grams at 9.26 am but silver added 0.41 percent at Rs 67,240 a kilogram.

COMEX gold trades modestly higher near $1930/oz aer a 1.4 percent decline on March 2. Gold trades higher amid lack of any overtly hawkish comments from Fed Chairman as he expressed support for rate hike while indicang that they are keeping an eye on Russia-Ukraine tensions. Safe haven buying and inflaon concerns has also kept prices higher however stability in the equity market has kept a check on the upside. Gold may remain volale as Russia-Ukraine situaon is assessed, however safe haven buying may keep prices supported, said Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securies.

Ravi Singh - Vice President and Head of Research - ShareIndia

Gold prices showed some selling on account of higher US dollar. Investors are awaing Federal Reserve Chairman Jerome Powell's tesmony before the US Congress on Wednesday and Thursday for more clarity on interest rate hikes amid the Ukraine tensions and soaring inflaon. We expect gold to trade in a range bound zone this week.

Buy zone near Rs 51,000 for target of Rs 51,500 Sell zone below Rs 50,800 for target of Rs 50,500

Amit Khare, AVP- Research Commodities, Ganganagar Commodity

Market is very volale due to the Russia Ukraine crisis. So small traders should avoid trade for some days. As per technical chart, gold and silver charts are showing some profit booking and making temporary top, momentum indicator RSI is also indicang the same on the hourly as well as daily chart. So only risky traders are advised to create fresh short posions near given resistance levels, traders should focus on important technical levels.

April gold closing price Rs 51,294, Support 1 - Rs 51,000, Support 2 - Rs 50,800, Resistance 1 - Rs 51,550, Resistance 2 - Rs 51,800.

May silver closing price Rs 67,667, Support 1 - Rs 67,400, Support 2 - Rs 66,600, Resistance 1 - Rs 68,000, Resistance 2 - Rs 68,600.

Manoj Kumar Jain of Prithvi Finmart Commodity Research

Gold and silver showed profit taking on Wednesday amid strong gains in the dollar index and upbeat US ADP non-farm employment data. Both the precious metals seled on a weaker note in the internaonal markets. We expect both precious metals to show strength again in today’s session amid Russia-Ukraine ceasefire talks fail and record gains in internaonal oil prices. WTI crude oil hit fresh 8.5 year highs on Wednesday and could support precious metal prices. Gold could test $1945 per troy ounce and silver could also test $25.55 per troy ounce levels in today’s session. Gold has support at $1910-1896 per troy ounce and resistance at $1933-1945 per troy ounce while silver has support at $25.00-24.70 per troy ounce and resistance at $25.40-25.55 per troy ounce.

Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart

Gold and silver prices remained down yesterday as Fed Chairman Jerome Powell signaled a rate hike this month amid the Russia-Ukraine war. The unprecedented rise in commodies prices is warning of higher inflaon which warrants higher interest rates. Gold prices dropped around 1 percent on March 2 as the Bank of Canada increased policy interest rate and Powell reiterated the Fed's core narraon of rate hike. The slump in prices of precious metals is expected today due to ght monetary policy. Gold has resistance at Rs 51,800 and support at Rs 50,800. Silver has resistance at Rs 68,300 and support at Rs 66,500.

Yellow metal tops Rs 52,000, Silver marches higher

NEW DELHI: Gold prices rose on Friday as investors lapped up to the safe haven, which was set for best weekly gains since May 2021. Gold futures on MCX were trading higher by 0.48 per cent or Rs 251 at Rs 52,021 per 10 grams. Silver futures were trading up 0.45 per cent or Rs 306 at Rs 68,210 per kg.

Gold prices traded higher on Friday as the yellow metal gained supported by fall in US bond yields along with inflaon worries with rise in energy cost. The recent surge in coal, gas and oil prices have boosted buying in gold.

Ravi Singh, Vice President and Head of Research, ShareIndia said that the Fed is expected to start raising rates by only 25 bps, which means the central bank is even behind the curve in its inflaon fight and that should be good for gold.

"Investors are looking out for more clues on US interest rate hikes as Fed Chair Jerome Powell's Congress tesmony enters its second day," he added.

In the spot market, highest purity gold was sold at Rs 51,638 per 10 grams while silver was priced at Rs 68,015 per kg on Thursday, according to the Indian Bullion and Jewellers Associaon.

The spot prices of gold have jumped as much as Rs 1,500 per 10 grams in the last two weeks, whereas silver has surged about Rs 4,250 per kg from the prices during the period under review.

Trading strategy

“We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,920 and resistance at $1,970 per ounce. MCX Gold April support lies at Rs 51,200 and resistance at Rs 52,400 per 10 gram," said Tapan Patel, Senior Analyst (Commodies), HDFC Securies.

Global markets

Spot gold rose 0.6 per cent to $1,946.41 per ounce by 0100 GMT and was on track for a weekly gain of about 3 per cent. US gold futures also rose 0.6% to $1,948.60.

Palladium gained 1.6 per cent to $2,818.86, aer hing its highest level since mid-July 2021 at $2,835.48 earlier in the session. It was all set to gain about 20 per cent, its best weekly rise since late March 2020.

Spot silver was up 0.4 per cent at $25.25 per ounce and set for a fih consecuve weekly rise, while planum rose 0.4 per cent to $1,084.82.