Gold hit the key level of $2,000 per ounce on March 7 in the international markets as concerns over Russia-Ukraine conflict pushed investors towards safe-haven assets. Spot gold rose 1.5 percent to $1,998.37 per ounce, after scaling a 1-1/2-year peak of $2,000.69 earlier. US gold futures rose 1.7% to $2,000.20.
At 9.38 am, gold contracts were up 1.89 percent at Rs 53,550 for 10 grams on the Multi-Commodity Exchange (MCX) and silver spiked 2.35 percent at Rs 70,785 a kilogram.
Explosive moves in commodity prices increase the fear of inflation. US senate weighing the cutting import of Russian oil is supportive to crude oil prices that may increase buying momentum in the precious metals. Uncertainty standoff economic activity and appeals to safe-haven demand. Gold is likely to test Rs 53000 levels and above this more upside is expected. It has immediate support at Rs 51800. Silver has resistance at Rs 70000 and support at Rs 67700, said Nirpendra Yadav, Senior Commodity Research Analyst at Swatika Investmart.
Trading Strategy
Manoj Kumar Jain of Prithvi Finmart Commodity Research
Gold and silver on March 4 settled on a positive note in the international markets. Gold April futures contract settled at $1,974.30 per troy ounce, up by 1.98% and silver May futures contract settled at $25.90 per troy ounce, up by 2.72%. Domestic markets also settled on a positive note. We expect gold prices to cross $2000 per troy ounce levels and silver could also test $26.80 per troy ounce levels in the upcoming sessions. Any dip in the prices would be buying opportunity in precious metals. Gold has support at $1955-1938, while resistance is at $1988-2000 per troy ounce. Silver has support at $25.55-25.20, while resistance is at $26.30-26.80 per troy ounce.
At MCX, gold has support at Rs 52240-51900 and resistance at Rs 52880-53100 and silver has support at Rs 68500-68100 and resistance at Rs 69800-70400. We suggest buying gold above Rs 52600 with a stop loss below Rs 52300 on a closing basis for target of Rs 53200 and silver above Rs 69200 with a stop loss below Rs 68500 on a closing basis for target of Rs 70400.
Vidit Garg, Director, MyGoldKart
Possible default of Russia on its foreign debt and possibilities for banning of Russian Crude by European Union and US has pushed prices up to magical figure of $2000. Technically, if we see the charts removing the noise of war then it seems that for once it can come down till $1950 or $1940, ADX is almost touching 50 kind of levels which reflects that sooner we may witness buyer exhaustion and profit booking by them. 9 period EMA on intraday chart stands at $1981 while 21 period stands at $1968.
Rahul Kalantri, VP Commodities, Mehta Equities
Gold and silver showed solid strength last week amid intensifying war between Russia-Ukraine. Major risk aversion due to war supported safe-haven buying of precious metals. Despite strength in the dollar index gold and silver gained last week. Global equity markets also plunged and investors are moving from riskier assets to safe haven assets. Gold prices crossed $1982 per troy ounce amid fresh sanctions on the Russia by western countries. Record global energy prices are also supporting precious metals.
We expect gold prices to cross $2000 per troy ounce levels and silver could also test $26.80 per troy ounce levels in the upcoming sessions. Any dip in the prices would be buying opportunity in precious metals. Gold has support at $1970-1948, while resistance at $2000-2022 per troy ounce. Silver has support at $25.55-25.20, while resistance is at $26.30-26.80 per troy ounce.
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