Gold loses sheen as hope on diplomatic resolution of Russia-Ukraine stand-off builds; expert gives strategy for futures trading on MCX

Gold lost some of its sheen on Friday after US Secretary of State agreed to a meeting with Russia’s Foreign Minister, raising hopes for a diplomatic solution to the East-West standoff over Ukraine. Gold prices retreated on Friday, after breaking above the key $1,900 level for a second consecutive session, Reuters reported.

Spot gold fell 0.3 per cent to USD1,890.77 per ounce, as of 0308 GMT (8:38 am IST), after touching its highest in eight months at USD 1,902.22 earlier in the session, the report said. US gold futures dropped 0.5 per cent to USD 1,892.70 around this time.

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Spot price of Silver was USD 23.70.

The impact was seen even on the domestic bullion markets as Gold and Silver futures were trading cheaper on the MCX around 1 pm.

April Gold Futures were trading at Rs 50,031 per 10 gm on MCX around this time, down by Rs 360 or 0.7 per cent from the Thursday closing price. Meanwhile, March Silver Futures were also trading at Rs 63,750 per kg, down almost 0.2 per cent from the last closing price.

Analyst Anuj Gupta sees this as a buying opportunity in Gold and Silver futures. He sees support for April Gold futures between Rs 49900 and Rs 49650 while the resistance between Rs 50350 and Rs 50800. He recommended buying at Rs 49,900 with as stop loss of  Rs 49,650 and target of Rs 50,350 and Rs 50,500.

As for March Silver futures, buying is recommended at Rs 63,500 with a stop loss of Rs 62,850 and target of 64,700 and Rs 65,000.

Gupta, who is Vice President (VP), Commodity and Currency Research at IIFL Securities said that support was in the Rs 63,500- Rs 62850 zone while resistance was seen between Rs 64700 and Rs 65,350.

Meanwhile, Motilal Oswal report expects bullion to trade with a positive bias over this session.

The brokerage sees support for April Gold futures between Rs 50050 and Rs 49,850 while the resistance between Rs 50500 and Rs 50,700. No recommendation was given.

As for Silver futures, support was in the Rs 63,500- Rs 63200 zone while resistance was seen between Rs 64100 and Rs 64,500.