Gold Prices Today: Geopolitical tensions push yellow metal in over-bought zone; resistance at Rs 48,550-48,800

Gold prices in the international markets steadied near a two-month high scaled in the previous session, with higher US Treasury yields preventing any gains amid caution building around developments at the US Federal Reserve meeting due next week.

On the Multi-Commodity Exchange (MCX), gold contracts were trading marginally down 0.05 percent to Rs 48,351 for 10 grams at 9.32am and silver futures added 0.23 percent to Rs 64,553 a kilogram.

Gold and silver prices soared on worry over inflation as crude oil prices breached the resistance level and look set to move towards $100. Investors kept them away from risky assets and switched to safe heaven. The dollar index and bond yield also retreated from current levels.

On the MCX, the yellow metal has resistance at Rs 48,300 and, above this level, it may move towards Rs 48,700. It has support at Rs 48,000. The white metal, on the other hand, has resistance at Rs 64,500 and support at Rs 63,300, said Abhishek Chauhan, Head of Commodity & Currency at Swastika Investmart.

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Trading Strategy

Vidit Garg, Director, MyGoldKart

Gold rose more than 1 percent on Wednesday as a retreat in the dollar and geopolitical tensions surrounding Ukraine burnished safe-haven bullion's appeal, sparking a rally in precious metals. Technically, intraday charts are in overbought zone and any move below $1,838 and can drag it till $1,823, while resistance is placed at $1,850 and $1,856. ADX is suggesting exhaust in uptrend.

Manoj Kumar Jain, Prithvi Finmart Commodity Research

Gold and silver showed solid strength on Wednesday amid global inflation concerns due to higher global oil prices. Both the precious metals settled on a positive note in the international markets. We suggest a buy on dips strategy in both precious metals. Gold has support at $1,832-1,818 per troy ounce and resistance at $1,855-1,870 per troy ounce, while silver has support at $23.88-23.55 per troy ounce and resistance at $24.50-24.84 per troy ounce.

At MCX, gold has support at Rs 48,155-48,000 and resistance at Rs 48,550-48,800. Silver has support at Rs 64,100-63,500 and resistance at Rs 64,800-65,300. We suggest buying gold on dips around Rs 48200 with a stop loss of Rs 47980 for target of Rs 48600 and silver around Rs 64000 with a stop loss of Rs 63500 for target of Rs 64800.

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