Gold steadied on February 17 in international markets going near an eight-month high touched earlier this week, as the US dollar and Treasury yields dipped on less hawkish-than-feared Federal Reserve minutes, and as the Ukraine crisis boosted demand for the safe-haven metal.
At the Multi-Commodity Exchange (MCX), gold contracts were trading marginally lower by 0.05 percent at Rs 49,591 for 10 grams at 9.26am and silver shed 0.42 percent to trade at Rs 63,036 a kilogram.
Gold and silver recovered from their lows due to weakness in the dollar and geo-political tensions on February 16. Both precious metals settled on a positive note in the international markets. Looking at the uncertainty over Russia-Ukraine tensions and weakness in the dollar index, both the precious metals may remain volatile in today’s session. Gold has support at $1858-1845 per troy ounce and resistance at $1884-1896 per troy ounce while silver has support at $23.30-23.10 per troy ounce and resistance at $23.88-24.10 per troy ounce, said Manoj Kumar Jain of Prithvi Finmart Commodity Research.
At MCX, gold has support at Rs 49400-49240 and resistance at Rs 49850-50000 while silver has support at Rs 62900-62660 and resistance at Rs 63800-64100 levels. "We suggest buying silver on dips around Rs 63000 with a stop loss of Rs 62600 on a closing basis for target of Rs 64000," he added.
Trading Strategy
Rahul Kalantri, VP Commodities, Mehta Equities
Gold has support at $1858-1845, while resistance is at $1884-1896 per troy ounce. Silver has support at $23.30-23.10 and resistance at $23.88-24.10 per troy ounce. In rupee terms, gold has support at Rs 49,358–49,098, while resistance is at Rs 49,769–49,920. Silver has support at Rs 62,899- 62,500 and resistance at Rs 63,579–63,860.
Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart
Despite strong US retail sales data, gold and silver prices gained around 0.35% due to speculation over eased geopolitical tensions between Russia and Ukraine. Gold prices rebounded near crucial support of Rs 49000. Silver is also holding support of Rs 62500. The dollar which generally moves opposite to gold prices remained down for two consecutive days and supported the prices of precious metals in the near term.
Vidit Garg, Director, MyGoldKart
Dovish minutes with confusion around Russian troops' backward movement supported gold prices and helped them move towards closing around $1870. Technically, for the day movement above $1873 will take prices towards $1884-1888 while a trade below $1860 will bring meaningful correction towards $1843. RSI on intraday charts are diverging again while ADX is suggesting not so strong a trend.
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