Gold price in India crossed Rs 50,000-mark on Friday. The ongoing Ukraine-Russia conflict and sooner-than-anticipated probable rate hike pushed by the gold price to nearly an eight-month high in the country. On the Multi Commodity Exchange, gold future was trading at Rs 50,186 for 10 grams at 0920 hours on February 18. Silver price future remained flat at Rs 63,833 for a kilogram on February 18.
In the international market, gold price retreated on Friday. Spot gold slightly dropped 0.3 per cent to $1,890.77 per ounce, as of 0308 GMT. It touched $1,902.22 earlier in the session, highest in eight months. US gold futures dropped 0.5 per cent to $1,892.70.
A sudden exchange of fire between Ukraine forces and pro-Russian separatists on Thursday, renewed Western fears of an imminent Russian invasion. US President Joe Biden said Moscow is preparing a pretext to justify a possible attack. The rising tension between Russia and US continued to support oil markets. US stocks tumbled more than 1 per cent, while the latest Federal Open Market Committee minutes did not offer fresh hawkish clues and lent support to bullion. The US Dollar and the benchmark bond rose on Thursday and capped upside.
International gold spot and futures started flat weaker this Friday morning in Asian trade as investors booked profits from Thursday’s rally. but downside can be capped as Ukraine standoff could intensify further.
Gold Price Outlook: Will Gold Rate Jump Further?
“Technically, if April COMEX gold trades above $1891.00 level, it could continue the bullish momentum up to the resistance zone at $1914.10-$1926.20. A trade below could pull the prices to the support zone at $1879.80-$1857.60.
Domestic gold prices could start weak this early Friday morning tracking the overseas prices. Technically, if MCX gold April trades above Rs 50,130 level, it could continue the bullish momentum up to the resistance zone at Rs 50,500-50,700. A trade below could pull the prices to the support zone at Rs 49,820-49,500,” said Sriram Iyer, senior research analyst at Reliance Securities.
Gold prices rallied Thursday on escalating geopolitical tensions between Russia and western allies over Ukraine, as investors hastened for safe haven assets after the news broke out of mortar fire in eastern Ukraine. Russian backed rebels and Ukrainian forces traded allegations that each had fired across ceasefire line, said ICICI Direct in a report.
“Gold is likely to trade with a positive bias for the day amid flare-up in tension between Russia and Ukraine. Further, demand for safe-haven may go up as inflation is surging in many parts of the world. However, sharp upside may be capped as central banks across major countries plan to aggressively tighten their monetary policies to combat high inflation,” it added.
Silver Price Outlook
“International silver spot and futures have started weaker this early Friday morning in Asian trade, tracking gold prices. Technically, if March COMEX Silver trades above $23.750 level, it could witness a bullish momentum up to the resistance zone at $24.055-24.240. A trade below could pull the prices to the support zone at $23.565-$23.260. Domestic silver prices could start weaker this Friday morning tracking overseas prices. Technically, if MCX Silver March trades above Rs 63,600 level, it could witness a bullish momentum up to the resistance zone at Rs 64,280-64,700. A trade below could pull the prices to the support zone at Rs 63,185-62,505,” said Reliance Securities.
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