Gold price in India hits Rs 55,000-mark for the first time in over one-and-half year. The escalating tension between Russia and Ukraine and subsequent sanctions on Vladimir Putin’s country by the United States and allies pushed the yellow metal price. On the Multi-Commodity Exchange, the gold price future jumped 1.64 per cent to Rs 55,111 for 10 grams at 0915 hours on Wednesday. Similarly, silver price also jumped following the global cues. The precious metal future rose 2.19 per cent to Rs 72,950 for a kilogram on March 9.
In order to put pressure on Russia for invading Ukraine, United States President Joe Biden imposed a ban on Russian oil and other energy imports. Britain also joined the campaign against Putin as it had decided to phase out imports of Russian oil and products by the end of 2022. The geo-political uncertainty spooked the investors across the globe.
In the international market, gold extended rally on Tuesday towards a record high with US ban on oil from Moscow. However, the metal price slightly lost gains during early trade on Wednesday, weighed down by a stronger dollar and US Treasury yields. Spot gold was down 0.6 per cent at $2,040.07 per ounce, as of 0054 GMT. It rose to $2,069.89 during the previous, a whisker away from a record $2,072.49 touched in August 2020. US gold futures were up 0.2 per cent at $2,046.40. SPDR Gold Trust, holdings of the world’s largest gold-backed exchange-traded fund, jumped to 1,067.3 tonnes on Tuesday, highest since March 2021.
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US Treasury yields surged, bouncing off eight-week lows. The dollar index increased to more that one-and-half-year high hit earlier this week.
Gold Price Future
“Technically, if COMEX Gold April trades above $2035.97 level it could continue its bullish momentum up to the resistance zone at $2086.13-$2128.97. A trade below could pull prices to the support zone at $1993.13-$1942.97. Domestic gold prices could start weaker this early Wednesday morning, tracking a weak start in the overseas prices,” said Sriram Iyer, senior research analyst at Reliance Securities.
“Technically, if MCX Gold April trades above Rs 54,380 level it could continue its bullish momentum up to the resistance zone at Rs 55,400-56,580. A trade below could pull prices to the support zone at Rs 53,200-52,180,” Iyer added.
“The war has increased the safe-haven demand for gold, while investors have become more risk-averse and have continued selling equities. Gold prices are making new highs day by day and the inflation fears has added more fuel to it’s rally. Buy Zone Near – Rs 54,000 for the target of Rs 54,500. Sell Zone Below – Rs 53,800 for the target of Rs 53,500,” said Ravi Singh, vice president and head of research, ShareIndia.
Silver Price Future
“International silver spot and COMEX futures have started mixed this early Wednesday morning in Asian trade. Technically, if COMEX Silver May trades above $26.650 level it could continue its bullish momentum up to the resistance zone at $27.745-$28.590. A trade below could pull prices to the support zone at $25.800-$24.700,” Iyer added.
“Domestic silver prices could start weaker this early Wednesday morning, tracking overseas prices. Technically, if MCX Silver May trades above Rs 71,440 level it could continue its bullish momentum up to the resistance zone at Rs 73,025-74,665. A trade below could pull prices to the support zone at Rs 69,800-68,215,” he mentioned.
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Source: News18