NEW DELHI: Gold prices rallied on Tuesday, hitting a nine-month high, as geopolitical worries intensified.
Russian President Vladimir Putin recognised two breakaway regions in eastern Ukraine as independent and ordered the Russian Army to launch what Moscow called a peacekeeping operation into the area, accelerating a crisis the West fears could unleash a major war. This boosted safe-haven demand.
Gold futures on MCX were trading higher by 0.76 per cent or Rs 382 at Rs 50,460 per 10 grams. Silver futures were trading gained 1.02 per cent or Rs 638 at Rs 65,153 per kg.
In the spot market, the highest purity gold was sold at Rs 50,089 per 10 grams while silver was priced at Rs 63,661 per kg on Monday, according to the Indian Bullion and Jewellers Association.
Trading strategy
“We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,890 and resistance at $1,920 per ounce. MCX Gold April support lies at Rs 49,900 per 10 gram and resistance at Rs 50,600 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Global markets
Spot gold was up 0.2 per cent at $1,909.54 per ounce, as of 0035 GMT, after scaling its highest since June 1 at $1,913.89 per ounce earlier. US gold futures gained 0.7 per cent to $1,913.60.
Spot silver was up 0.4 per cent at $24.03 per ounce, platinum rose 0.5 per cent to $1,080.03 and palladium gained 0.5 percent to $2,399.41.