Gold Prices Today: Geopolitical tensions, high inflation to lend support to yellow metal

Gold, Gold Prices, Yellow Metal

Gold price rose on March 4 in the international market, eyeing its best weekly gain since May 2021, as investors scrambled for safe-haven assets after Russia attacked a nuclear power plant in Ukraine — the largest of its kind in Europe.

At 9.26 am, gold contracts were up 0.54 percent at Rs 52,050 for 10 grams on the Multi-Commodity Exchange (MCX) and silver added 0.51 percent at Rs 68,247 a kilogram.

Gold and silver on March 3 gained as safe-haven demand continued to support both the precious metals. Also, the rising global energy and grains prices continue to fuel inflation. Investors are moving from riskier assets to safe-haven assets once again, said Rahul Kalantri, VP Commodities, Mehta Equities.

We expect gold prices to test $1962 per troy ounce and silver could also test $25.80 per troy ounce levels. Gold has support at $1922-1908, while resistance at $1948-1962 per troy ounce. Silver has support at $24.88-24.50, while resistance is at $25.55-25.80 per troy ounce. In rupee terms gold has support at Rs51,457–51,144, while resistance is at Rs52,017–52,264. Silver has support at Rs67,478- 67,051 while resistance is at Rs68,553–69,201, he added.

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Trading Strategy

Manoj Kumar Jain of Prithvi Finmart Commodity Research

Gold and silver gained amid safe haven demand and dovish stance of the US Federal Reserve on the raising interest rates. Both precious metals gained in the international markets on Thursday. Gold April futures contract settled at $1935.90 per troy ounce with a gain of 0.71% and silver May futures contract settled at $25.21 per troy ounce with a gain of 0.09%. Both precious metals also settled on a positive note in the domestic markets. We expect gold prices to test $1962 per troy ounce and silver could also test $25.80 per troy ounce levels. Gold has support at $1922-1908 per troy ounce and resistance at $1948-1962 per troy ounce while silver has support at $24.88-24.50 per troy ounce and resistance at $25.55-25.80 per troy ounce.

At MCX, gold has support at Rs 51500-51350 and resistance at Rs 52000-52280 and silver has support at Rs 67200-66600 and resistance at Rs 68500-69200 levels. We suggest buying gold around Rs 51500 with a stop loss below Rs 51200 on a closing basis for target of Rs 52100 and silver around Rs 67500 with a stop loss below Rs 66800 on a closing basis for target of Rs 69200.

Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart

Gold and silver have traded range-bound yesterday as Fed's Powell pointed out towards higher commodity prices during his testimony. Powell said that rising prices of commodities will push inflation upward. Overheated prices of essential commodities during the pandemic, have got spurt due to recent geopolitical issues which are supporting a higher inflation rate and appeals for safe-haven demand. However, the Fed's indication of the rate hike has capped the gain of bullion but global uncertainty will support the prices. Gold has resistance at Rs 52100 and support at Rs 51200. Day trend in precious metals is likely to remain on the upside.

Ravi Singh - Vice President and Head of Research - ShareIndia

The Federal Reserve is expected to start raising rates with only a quarter point move, which means the central bank is even further behind the curve on in its inflation 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 testimony enters its second day.

Buy zone near Rs 51500 for target of Rs 51800
Sell zone below Rs 51300 for target of Rs 51000

Amit Khare, AVP - Research Commodities, Ganganagar Commodity

Market is very volatile now a days due to 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 indicating the same on the 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.

April Gold closing price Rs 51770, Support 1 - Rs 51600, Support 2 - Rs 51400, Resistance 1 - Rs 52100, Resistance 2 - Rs 52400.

May Silver closing price Rs 67904, Support 1 - Rs 67700, Support 2 - Rs 67300, Resistance 1 - Rs 68500, Resistance 2 - Rs 69200.

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