NEW DELHI: Gold prices dropped sharply on Friday on profit-taking although remained at multi-month highs amid global geopolitical worries. The bullion investors reassessed the situation surrounding Russia’s invasion of Ukraine and fresh sanctions against Moscow from the West.
Gold futures on MCX were trading lower by 1.05 per cent or Rs 553 at Rs 51,000 per 10 grams. Silver futures were trading down 1.65 per cent or Rs 1,105 at Rs 65,793 per kg.
Ravi Singh, Vice President and Head of Research, ShareIndia said that gold may continue its bull run taking cues from the geopolitical tension and higher inflation.
Buyers in major Asian hubs put off physical gold purchases last week due to a rally in prices on escalating Russia-Ukraine tensions, pushing Indian dealers to offer the highest discounts in nearly seven months.
Exchange-traded funds (ETFs) that invest in gold and other precious metals have seen massive inflows as investors rush to shield themselves.
In the spot market, the highest purity gold was sold at Rs 52,540 per 10 grams while silver was priced at Rs 68,149 per kg on Thursday, according to the Indian Bullion and Jewellers Association.
The spot prices of gold have jumped more than Rs 2,600 in the last four sessions, whereas Silver has advanced about Rs 4,700 per kg during the period under review.
Trading strategy
“We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,870 and resistance at $1,970 per ounce. MCX Gold April support lies at Rs 50,800 and resistance at Rs 51,800 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Global markets
Spot gold rose 0.3 per cent to $1,909.06 per ounce by 0204 GMT. US gold futures fell 0.8 per cent to $1,910.70. The metal jumped more than 3 per cent on Thursday to hit its highest level since September 2020 at $1,973.96.
Spot silver rose 0.5 per cent to $24.33 per ounce, platinum was up 0.4 per cent to $1,061.40. Palladium gained 1.4 per cent to $2,435.77, after reaching its highest level since July 2021 at $2,711.18 on Thursday.