Gold Price Today: Yellow metal surpasses 51,000 on MCX; silver gains over 1% on safe haven buying

India Gold MCX April futures surpassed Rs 51000 mark on Thursday tracking a positive trend seen in the international spot prices as investors sought refuge in safe havens after Ukraine declared an emergency.

The West imposed more sanctions on Russia for sending troops into eastern Ukraine, said a Reuters report. Spot gold trading over $1,900 per ounce after having hit its highest since June 1 at $1,913.89 per ounce on Tuesday.

On the Multi-Commodity Exchange (MCX), the April gold contracts were trading 1.4 per cent higher at Rs 51,129 per 10 grams at 0915 hours. The March silver futures were trading 1.3 per cent higher at Rs 65,430 a kilogram.
 

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Gold and silver extended its gain after rising conflicts between Russia and Ukraine. Both precious metals settled on a positive note in the international markets on Wednesday.

Gold April futures contract settled at $1910.40 per troy ounce and silver March futures contract were settled at $24.55 per troy ounce. Both precious metals also settled on a positive note in the domestic markets.

Rising Russia and Ukraine conflict supporting safe-haven buying in the precious metals. Gold and silver also gained after imposing sanctions on Russia by western countries, suggest experts.

Fresh sanctions on Russia could continue to keep global inflation at a higher side and support precious metals.

“Higher global energy prices continue to push global inflation higher and support precious metal prices as a hedge against inflation. We expect both precious metals to continue to show strength in upcoming sessions and gold prices could test $1935 per troy ounce and silver could also test $25 per troy ounce levels,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

“Gold has support at $1900-1888 per troy ounce and resistance at $1922-1935 per troy ounce while silver has support at $24.30-24.00 per troy ounce and resistance at $24.84-25.10 per troy ounce,” he said.

 
At MCX, gold has support at 50100-49920 and resistance at 50600-50850 while silver has support at 64220-63800 and resistance at 64950-65500.

Jain suggests buying gold on dips around 50100 with a stop loss of 49900 on a closing basis for the target of 50800 and silver around 64200 with a stop loss of 63600 on a closing basis for the target of 65200.

Technical Recommendations:

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

COMEX gold trades 1% higher near $1930/oz after a 0.4% gain yesterday. Gold has edged up on safe haven buying as Russia-Ukraine tensions intensified with the US warning of an imminent attack and imposing fresh restrictions on Moscow. ETF inflows also show buying interest in the metal.

However, weighing on price is gains in the US dollar and Fed’s monetary tightening expectations.

Gold may remain volatile as market players respond to development relating to Russia however unless there are serious efforts to resolve the issue, safe-haven buying may keep prices supported.

Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

Domestic gold prices could start higher this early Thursday morning, tracking overseas prices.

Technically, if MCX Gold April trades above 50250 level it could witness a Bullish momentum up to the resistance zone at 50545-50710. A trade below could pull prices to the support zone at 50085-49785.

International silver spot and futures started marginally higher this Thursday morning in Asian trade, tracking gold prices.

Technically, if COMEX Silver May trades above $24.450 level it could witness a Bullish momentum up to the resistance zone at $24.805-$25.016. A trade below could pull prices to the support zone at $24.240-$23.885.

Domestic silver prices could start stronger this early Thursday morning tracking the overseas prices.

Technically, if MCX Silver May trades above 65170 level it could witness a Bullish momentum up to the resistance zone at 65640-65890. A trade below could pull prices to the support zone at 64920-64450.

(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.)