Gold prices inched higher on April 18 in the international markets to their peak levels since mid-March, as the Russia-Ukraine crisis soured risk sentiment and drove investors to the safety of bullion.
Spot gold was up 0.5% at $1,984.58 per ounce, as of 0202 GMT, hitting its highest since March 14. US gold futures were up 0.7% at $1,987.70.
At 9.33 am, on the Multi-Commodity Exchange (MCX), gold contracts were up 0.8 percent, trading at Rs 53,414 for 10 grams, while silver jumped 1.43 percent to Rs 70,016 a kilogram.
Inflation data, that was higher than expected, pushed gold futures to $1980 an ounce on the Comex. Inflation numbers for major nations have climbed, while inflation in the United States has grown year-on-year even after slowing in March, remaining at a 40-year high. Rapid interest rate hikes and balance sheet reductions, along with growing inflation, are alarming. As a result, the world economy and the United States may be harmed, prompting a spike in US bond yields and the dollar index, as well as precious metals. The surge in crude oil prices has begun to show again, with Brent oil prices rising 8% in the last week to $ 111 per barrel, supporting inflation. Precious metals prices may continue to rise. Gold futures in June has support at Rs 52500 and resistance at Rs 53300 whereas, May futures Silver has support at Rs 68500 and resistance at Rs 70000, said Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart.
Trading Strategy
Ravi Singh - Vice President and Head of Research - ShareIndia
Gold as a safe haven are attractive due to soaring inflation and uncertainty in the Russian-Ukraine war. As long as the two factors continue to dominate markets for sentiment - a scenario for a further uptrend in gold price remains intact. It is a good opportunity to go long on every dips.
Buy zone near Rs 53200 for target of Rs 53500
Sell zone below Rs 53000 for target of Rs 52800
Manoj Kumar Jain, Prithvi Finmart Commodity Research
Gold and silver prices settled on a weaker note in the international markets. Gold June futures contract settled at $1,972.50 per troy ounce, down by 0.61% and silver May futures contract settled at $25.86 per troy ounce, down by 0.02%.
We expect precious metals including gold and silver to remain volatile this week and could test its resistance levels of $2000 per troy ounce and $27 per troy ounce respectively. Any decline in prices would be a buying opportunity in precious metals. Gold has support at $1958-1945, while resistance is at $1988-2000 per troy ounce. Silver has support at $25.55-25.30, while resistance is at $26.15-26.50 per troy ounce.
At MCX, gold has support at Rs 52770-52550 and resistance at Rs 53180-53440 while silver has support at Rs 68550-68100 and resistance at Rs 69440-70000. We suggest buying gold on dips around Rs 52770 with a stop loss of Rs 52550 on a closing basis for target of Rs 53200 and silver around Rs 68550 with a stop loss of Rs 67900 for target of Rs 70000.
Rahul Kalantri, VP Commodities, Mehta Equities
Gold eased on Thursday after the dollar strengthened and yields rose as investors geared up for US interest rate hikes, but safe-haven demand triggered by the Ukraine crisis and mounting inflation kept bullion on track for a weekly gain, although a firmer US dollar capped bullion's gains. Gold and silver slipped on Friday after record gains in the dollar. The dollar index surged to two year highs and triggered profit taking in precious metals. The US inflation reached 40 year highs and UK inflation also crossed 30 year highs. Higher energy prices continue to fuel global inflation is boosting to gold and silver.
Gold silver prices today are showing positive opening and could test its resistance levels of $2000 per troy ounce and $27 per troy ounce respectively. Gold has support at $1956-1940, while resistance is at $1984-2000. Silver has support at $25.40- 25.10, while resistance is at $25.95-26.18. In rupee terms, gold has support at Rs 52,670–52,410, while resistance is at Rs53,220–53,450. Silver has support at Rs 68,550- 67,980 while resistance is at Rs69,980–70,410.
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