Gold prices rose more than 1% on February 28 in international markets and were set for their best monthly gain in nine, after Western countries slapped fresh sanctions on Russia for invading Ukraine and President Vladimir Putin put his country's nuclear deterrent on high alert.
At the Multi-Commodity Exchange (MCX), gold contracts jumped 1.73 percent to Rs 51,090 for 10 grams at 9.28am and silver gained 1.72 percent to trade at Rs 65,125 a kilogram.
After Russia invaded Ukraine, there was a tremendous rise in gold and silver prices last week. US Fed Chair Powell's testimony scheduled this week is important for bullion prices as further clues on rate hikes could be revealed. US non-farm employment figures and the meeting of OPEC and non-OPEC countries are scheduled this week amid the war between Russia and Ukraine, which is likely to increase volatility in bullion prices. April futures gold has resistance at Rs 53000 and support at Rs 50400 whereas April futures silver has support at Rs 65000 and resistance at Rs 67000, said Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities
COMEX gold trades about 1% higher near $1912/oz after a modest decline last week. Gold has edged up on safe haven buying as western countries ratcheted up sanctions on Russia while there is uncertainty of a major breakthrough in talks. Adding support to prices, Bank of Russia said it will start purchasing gold again. However, safe haven buying has also pushed US dollar index higher and this has kept a check on gains in gold. Gold may remain volatile as market reacts to Russia-Ukraine developments but the general bias may be on the upside until there are clear signs of de-escalation in tensions.
Vidit Garg, Director, MyGoldKart
Gold prices declined on February 25 after Biden signalled that armed forces will not be used against Russia while they were more than $20 up today as Russia President Putin put his country's nuclear deterrent on high alert. Technically on charts, prices have strong support around $1890 and further downside only possible below this level while on upside $1920 may act as a strong resistance. Move beyond or above these levels will bring $30 movement on that side, escalating tensions and the Russian attitude signals that we may continue to witness safe haven buying in the metal.
Manoj Kumar Jain of Prithvi Finmart Commodity Research
Gold and silver prices on February 28 settled on a weaker note in international markets. Gold April futures contract settled at $1,890.55 per troy ounce, down by 1.86%, and silver March futures contract settled at $24.31 per troy ounce, down by 1.55%. We expect both the precious metals to remain volatile this week amid volatility in the dollar index, Fed Chairman testimony and statements on Russia-Ukraine war. Any further decline in the prices would be an opportunity for buying at lower levels. Gold has support at $1874-1862 while resistance at $1910-1922 per troy ounce. Silver has support at $24.00-23.80 and resistance at $24.70-25.10 per troy ounce.
At MCX, gold has support at Rs 49920-49660 and resistance at Rs 50550-50800 while silver has support at Rs 64220-63660 and resistance at Rs 65750-66200. We suggest buying gold on dips around Rs 49950 with a stop loss at Rs 49600 on a closing basis for target of Rs 50550 and silver around Rs 64340 with a stop loss of Rs 63600 on a closing basis for target of Rs 65500.
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