Gold prices edged higher on February 15 in the international market towards the three-month peak touched in the previous session as heightened tensions between Russia and the West over Ukraine prompted investors to pull back from riskier assets and opt for safe-haven bullion.
At the Multi-Commodity Exchange (MCX), gold contracts were trading higher by 0.55 percent at Rs 50,190 for 10 grams at 9.27am and silver rose 0.42 percent to trade at Rs 64,503 a kilogram.
Gold is all set to make one of the biggest fortnightly gains in recent months on the back of tensions between Russia and Ukraine despite strong minutes from Fed which signaled a hawkish stance in the coming months. Support for gold is at $1850 while resistance is placed at $1884. Traders are advised to short the metal only if it breaks last 2 hours low with a stop loss of day's high and target of $1840, said Vidit Garg, Director at MyGoldKart.
Trading Strategy
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities
COMEX gold trades marginally higher near $1873/oz after a 1.5% gain yesterday. Gold trades near 3-month high supported by safe haven buying amid tensions relating to Russia, increased inflation concerns amid rising crude oil and commodity prices and increased volatility in equities. However, weighing on price is Fed’s monetary tightening expectations which has kept US dollar supported. Gold ETF investors have moved to side-lines after recent inflows. Gold may remain firm unless there are concrete measures to resolve Russia-Ukraine standoff.
Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart
US bond yield and dollar index gained ground as Fed's Bullard appealed Fed to assure the public to defend the target inflation rate. However, fear over geopolitical tension between Ukraine and Russia increases the demand for safe-haven assets. Gold on MCX breached Rs 50000 levels in the previous session and gained around 2%. Silver prices also advanced more than 2%. However, profit booking was seen on precious metals after Fed's Bullard speech. Gold has support at Rs 49600 and the uptrend is likely to continue in today's session.
Manoj Kumar Jain of Prithvi Finmart Commodity Research
Gold and silver extended gain on Monday amid Russia-Ukraine tensions and sell-off in global equity markets. Both precious metals settled on a positive note in the international markets. Higher inflation fears due to rising global energy prices are also supporting precious metals. Global equity markets plunged once again amid anticipation of faster rate hikes by the US Federal Reserve and geo-political tensions and supported safe haven assets. Gold prices are heading towards $1900 per troy ounce and silver prices are inching closer to $24 per troy ounce.
Despite expectations of aggressive rate hikes by the US Federal Reserve, both precious metals are showing strength. We expect both precious metals to remain positive in today’s session and could extend their gains. Buy on dips strategy will work in both precious metals. At MCX, gold has support at Rs 49700-49440 and resistance at Rs 50200-50500 while silver has support at Rs 63660-63200 and resistance at Rs 64700-65200 levels. We suggest buying gold above Rs 50,000 with a stop loss below Rs 49,700 on a closing basis for target of Rs 50,500 and silver around Rs 64000 with a stop loss below Rs 63400 on a closing basis for target of Rs 65,200.
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