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.
Edited by : A.Madhuri
