Gold was trading a tad higher in India on March 2, while the price dipped in the international market as the dollar ticked higher, outweighing safe-haven demand fuelled by the intensifying Russia-Ukraine conflict.
On the Multi-Commodity Exchange (MCX), gold contracts were up 0.03 percent at Rs 51,830 for 10 grams at 9.51 am but silver was down 0.21 percent at Rs 66,856 a kilogram.
In the international market, spot gold was down 0.4 percent at $1,935.38 a troy ounce. US gold futures also fell 0.4 percent to $1,936.50.
On March 1, gold touched a high of $1,940 after talks between Russia and Ukraine remained inconclusive.
“In the morning we have seen dip coming in yellow metal as safe heaven demand of dollar outpaced gold as investors are worried that Russians may sell gold to meet their fiscal demands,” said Vidit Garg, Director, MyGoldKart.
“Technically we are in overbought zone and ADX levels are at 40, which reflects that still ignition is left in the bulls and $1,929 with $1,920 will continue to provide support to the metal.” A sustained move below $1,920 would bring bears into the play, Garg added.
Trading Strategy
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities
Comex gold was trading mixed near $1,940 after gaining 2.3 percent the previous day.
Gold was range-bound as support from safe-haven buying and inflation concerns amid increased the Russia-Ukraine war was countered by firmness in the dollar and uncertainty over the Fed’s monetary policy.
Gold has bounced back after a brief correction, however, prices are still below the recent highs, which shows waning confidence.
Volatility may continue and unless there are concrete efforts to defuse tensions, general bias may be on the upside.
Nirpendra Yadav, Senior Commodity Research Analyst, Swastika Investmart
Gold and silver prices have resumed uptrend as the Russia-Ukraine war is expected to intensify.
Brent crude soared 8 percent in the previous session, while prices in the domestic market crossed all-time high ahead of the OPEC and non-OPEC countries meeting, scheduled later in the day.
High prices ramp up the possibility of higher inflation, which supports bullion. The uptrend in gold and silver may continue as sanctions on Russia can hit global growth. Gold has resistance at Rs 51,800 and support at Rs 51,100.
Manoj Kumar Jain of Prithvi Finmart Commodity Research
Gold and silver gained on March 1 amid Russian aggression. Both metals settled on a positive note in the international market.
April gold futures contract settled at $1,943.80, up 2.27 percent and May silver futures settled at $25.54, gaining 4.81 percent.
Both precious metals settled on a positive note in the domestic market. We expect gold and silver prices to remain positive and any decline would be a buying opportunity.
Gold could test $1,970 and silver $26.20 per in the upcoming sessions. Gold has support at $1,922-1,908 and resistance at $1,955-1,970 per. while silver has support at $25.20-24.84 and resistance at $25.88-26.20.
On MCX, gold has support at Rs 51,480-51,100 and resistance at Rs 52,100-52,450. For silver, support is at Rs 67,700-67,100 and resistance at Rs 68,800-69,500.
We suggest buying gold on dips around Rs 51,400 with a stop loss below Rs 51,100 on a closing basis for target of Rs 52,100 and silver around Rs 67,500 with a stop loss below Rs 66,600 on a closing basis for a target of Rs 69,100.
Disclaimer: The views and investment tips expressed by experts on moneycontrol.com are their own, and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
