Gold Prices Today: Russia-Ukraine war, spike in oil prices to push yellow metal higher

Gold, Gold Prices

Gold prices went flat on March 3 in the international markets as risk appetite improved after the US Federal Reserve chairman tried to assuage fears about aggressive interest rate hikes, offsetting safe-haven demand spurred by the Russia-Ukraine conflict.

On the Multi-Commodity Exchange (MCX), gold contracts were up 0.54 percent at Rs 51,570 for 10 grams at 9.26 am but silver added 0.41 percent at Rs 67,240 a kilogram.

COMEX gold trades modestly higher near $1930/oz after a 1.4 percent decline on March 2. Gold trades higher amid lack of any overtly hawkish comments from Fed Chairman as he expressed support for rate hike while indicating that they are keeping an eye on Russia-Ukraine tensions. Safe haven buying and inflation concerns has also kept prices higher however stability in the equity market has kept a check on the upside. Gold may remain volatile as Russia-Ukraine situation is assessed, however safe haven buying may keep prices supported, said Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities.

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Ravi Singh - Vice President and Head of Research - ShareIndia

Gold prices showed some selling on account of higher US dollar. Investors are awaiting Federal Reserve Chairman Jerome Powell's testimony before the US Congress on Wednesday and Thursday for more clarity on interest rate hikes amid the Ukraine tensions and soaring inflation. We expect gold to trade in a range bound zone this week.

Buy zone near Rs 51,000 for target of Rs 51,500
Sell zone below Rs 50,800 for target of Rs 50,500

Amit Khare, AVP- Research Commodities, Ganganagar Commodity

Market is very volatile due to the 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 on important technical levels.

April gold closing price Rs 51,294, Support 1 - Rs 51,000, Support 2 - Rs 50,800, Resistance 1 - Rs 51,550, Resistance 2 - Rs 51,800.

May silver closing price Rs 67,667, Support 1 - Rs 67,400, Support 2 - Rs 66,600, Resistance 1 - Rs 68,000, Resistance 2 - Rs 68,600.

Manoj Kumar Jain of Prithvi Finmart Commodity Research

Gold and silver showed profit taking on Wednesday amid strong gains in the dollar index and upbeat US ADP non-farm employment data. Both the precious metals settled on a weaker note in the international markets. We expect both precious metals to show strength again in today’s session amid Russia-Ukraine ceasefire talks fail and record gains in international oil prices. WTI crude oil hit fresh 8.5 year highs on Wednesday and could support precious metal prices. Gold could test $1945 per troy ounce and silver could also test $25.55 per troy ounce levels in today’s session. Gold has support at $1910-1896 per troy ounce and resistance at $1933-1945 per troy ounce while silver has support at $25.00-24.70 per troy ounce and resistance at $25.40-25.55 per troy ounce.

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At MCX, gold has support at Rs 51,000-50,750 and resistance at Rs 51,600-51,880 while silver has support at Rs 67,200-66,660 and resistance at Rs 68,200-68,800 levels. We suggest buying gold on dips around Rs 51,100 with a stop loss below Rs 50,800 on a closing basis for target of Rs 51,700 and silver around Rs 67,300 with a stop loss below Rs 66,660 on a closing basis for target of Rs 68,500.

Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart

Gold and silver prices remained down yesterday as Fed Chairman Jerome Powell signaled a rate hike this month amid the Russia-Ukraine war. The unprecedented rise in commodities prices is warning of higher inflation which warrants higher interest rates. Gold prices dropped around 1 percent on March 2 as the Bank of Canada increased policy interest rate and Powell reiterated the Fed's core narration of rate hike. The slump in prices of precious metals is expected today due to tight monetary policy. Gold has resistance at Rs 51,800 and support at Rs 50,800. Silver has resistance at Rs 68,300 and support at Rs 66,500.

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