There seems to be no respite from the ongoing Ukraine crisis as the high level talks between the two nations remained inconclusive yet again. The impact was visible on the precious metal prices which gained in the international markets on March 10 as investors again become risk averse and moved to the safer asset class.
The failure in talks also melted the global equity markets which ended with losses. The ever worsening US inflation also aided the shift towards precious metals.
April Gold futures contract settled at $2000.40 per troy ounce with a gain of 0.61% and May Silver futures contract closed at $26.26 per troy ounce with a gain of 1.69%.
In the domestic markets also, both the precious metals ended the day with marginal gains. April Gold futures contract on the Multi-Commodity Exchange (MCX) settled at Rs 53,239 per 10 grams with a gain of 0.94 percent and May Silver futures contract closed at Rs 70,471 per kilogram with a gain of 1.29 percent.
On MCX, gold futures opened with a loss of 0.1 percent at Rs 53,089 per 10 gram on March 11 and silver was down 0.5 percent at Rs 70,038 per kilogram.
At 9.39 am, gold was trading at Rs 52,934 down 0.57 percent, while silver was at Rs 70,101, down 0.53 percent.
“Russia-Ukraine ceasefire talks failed on Thursday and supported safe-haven buying of precious metals. U.S. February month inflation data was as per expectations but yearly inflation rose to 7.9 percent, its highest levels since January 1982”, said Manoj Kumar Jain of Prithvifinmart Commodity Research.
The ECB left its interest rates unchanged despite higher inflation and while rise in US unemployment claims also supported precious metals in the international markets.
Manoj Kumar Jain, Prithvi Finmart Commodity Research
We expect both precious metals remain volatile and buy on dips should be the strategy for precious metals. Gold is having support at $1,988-1,970 per troy ounce and resistance at $2,022-2,034 per troy ounce while silver is having support at $25.94-25.55 and resistance at $26.60-27.00 per troy ounce.
At MCX, gold is having support at Rs 52,800-52,550 and resistance at Rs 53,660-54,000 while silver is having support at Rs 69,800-69,200 and resistance at Rs 71,100-72,000. We suggest buying gold on dips around Rs 52,700 with a stop loss below Rs 52,400 on a closing basis for the target of Rs 53,600 and silver around Rs 69,500 with a stop loss below Rs 68,800 on a closing basis for the target of Rs 71,300.
Dr. Ravi Singh-Vice President and Head of Research-ShareIndia
Gold prices are expected to outperform even after the current war tension settles as due to the after-effects of war, higher commodities prices and soared inflation, the world would see some sort of recession zone where gold would be the preferred asset above all. It may continue to touch the level of Rs 55,000 in next trading sessions.
Buy Zone Near – Rs 53,100 for the target of Rs 53,500
Sell Zone Below – Rs 52,900 for the target of Rs 52,600
Amit khare, AVP- Research Commodities, Ganganagar Commodity Limited
The key outside markets see Nymex crude oil prices lower and trading around $106.00 a barrel. The U.S. dollar index is higher today. The benchmark U.S. 10-year Treasury note is presently yielding around 1.95%. U.S. Treasury yields are on the rise this week.
Market are very volatile now days due to Russia Ukraine crisis. So small traders should avoid trade for some more days. As per technical chart Gold and Silver charts are showing some profit booking and trading at overbought zone and making a top. Profit booking may continue in bullions at higher side. Momentum indicator RSI also indicating the same in hourly as well as daily chart, so only risky traders are advised to create fresh short positions near given resistance levels. Traders should focus important technical levels given below for the day.
April Gold: Support 1 – Rs 52,900, Support 2 – Rs 52,500, Resistance 1 – Rs 53,400, Resistance 2 – Rs 53,830
May Silver: Support 1 – Rs 69,400, Support 2 – Rs 68,700, Resistance 1 – Rs 70,800, Resistance 2 – Rs 71,530.