Gold Price Today: Yellow metal trades comfortably above Rs 50K; target seen at Rs 50,500

India Gold MCX April Futures were trading higher on Tuesday tracking a positive trend seen in the international spot prices which were trading near a 3-month high.

Gold touched a three-month peak touched in the previous session, as heightened tensions between Russia and the West over Ukraine prompted investors to pull back from riskier assets and opt for safe-haven bullion, said a Reuters report.

On the Multi-Commodity Exchange (MCX), the April gold contracts were trading 0.55 per cent higher at Rs 50,190 per 10 grams at 0915 hours. The March silver futures were trading 0.48 per cent higher at Rs 64,540 a kilogram.

Gold and silver extended its gain on Monday amid Russia-Ukraine tensions and sell-off in global equity markets.
 

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Gold April futures contract settled at $1869.40 per troy ounce, and silver March futures contract settled at $23.85 per troy ounce. Due to weakness in the rupee both precious metals were also settled on a positive note in the domestic markets.

Precious metals and dollars are catching the safe-haven demand once again. Higher inflation fears due to rising global energy prices are also supporting precious metals, suggest experts.

“Despite expectations of aggressive rate hikes by the U.S. Federal Reserve, both precious metals are showing strength. We expect both precious metals to remain positive in today’s session and could extend their gains. Buy on dips strategy will work in both precious metals,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

Gold has support at $1858-1845 per troy ounce and resistance at $1884-1892 per troy ounce while silver has support at $23.55-23.20 per troy ounce and resistance at $24.00-24.44 per troy ounce.

“At MCX, Gold has support at 49700-49440 and resistance at 50200-50500 while silver is having support at 63660-63200 and resistance at 64700-65200 levels,” he said.

Jain suggests buying gold above 50,000 with a stop loss below 49,700 on a closing basis for the target of 50,500 and silver around 64000 with a stop loss below 63400 on a closing basis for the target of 65,200.

Trading Strategy:

Expert: Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities

COMEX gold trades marginally higher near $1873/oz after a 1.5% gain yesterday. Gold trades near 3-month high supported by safe-haven buying amid tensions relating to Russia increased inflation concerns amid rising crude oil and commodity prices and increased volatility in the equities.

However, weighing on price is Fed’s monetary tightening expectations which has kept US dollar supported. Gold ETF investors have moved to side-lines after recent inflows.

Gold may remain firm unless there are concrete measures to resolve the Russia-Ukraine standoff.

Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

Domestic gold prices could start flat to higher this early Tuesday morning tracking the overseas prices.

Technically, if MCX Gold April sustains above 49900 level it could witness bullish momentum up to the resistance zone at 50080-50200 levels. The support zone is at 49800-49650 levels.

International silver spot and futures have higher this early Tuesday morning in Asian trade, tracking stronger gold and weaker dollar.

Technically, LBMA Silver could witness some sideways to marginal upside momentum above $23.50 level up to the resistance zone at $23.97-$24.40 levels. The support zone is at $23.20-$22.10 levels.

Domestic silver prices could start with gains Tuesday morning tracking overseas prices.

Technically, if MCX Silver March sustains above 64000 level it could witness a Bullish momentum up to the resistance zone at 64700-65200 levels. Support is at 63500-63000 levels.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)