NEW DELHI: Gold prices were trading ona volatile note, near their highest level since June 2021. Mounting tensions between Russia and the West over Ukraine lifted bullion’s safe-haven appeal, buttressed by lower US bond yields. However, deplomatic solution and various statements may continue to keep prices volatile.
Gold futures on MCX were down by 0.36 per cent or Rs 180 at Rs 50,212 per 10 grams. Silver futures were almost flat, down 0.4 per cent or Rs 24 at Rs 63,837 per kg.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research, Kotak Securities said that gold has come off highs amid reports that US Secretary of State and Russian foreign officials may meet next week and amid the hawkish Fed comments.
“Gold may remain volatile as market players assess geopolitical situations, however, the general bias may be on the upside until US and western countries dial down the possibility of an attack by Russia or unless there is a major breakthrough in diplomatic talks,” he added.
In the spot market, the highest purity gold was sold at Rs 50,109 per 10 grams while silver was priced at Rs 63,785 per kg on Thursday, according to the Indian Bullion and Jewellers Association.
The spot prices of gold have gained more than about Rs 2,300 in the current month so far, whereas Silver has soared more than 2,700 per kg in the same period under review.
Trading strategy
“We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,878 and resistance at $1,915 per ounce. MCX Gold April futures support at Rs 50,100 and resistance at Rs 50,800 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Global markets
Spot gold rose 0.3 per cent to $1,902.20 per ounce, as of 0033 GMT, its highest in eight months. US gold futures added 0.1 per cent to $1,904.30.
Spot silver was up 0.2 per cent at $23.86 per ounce and palladium rose 0.8 per cent to $2,385.08, with both set for weekly gains. Platinum gained 0.5 per cent. to $1,094.83, its highest since mid-November, setting up its best weekly show since June.