Gold prices in India saw a huge jump on Monday as the rupee plunged to a lifetime low amid the Russo-Ukraine war. Safe haven demand increased as the ongoing war and mounting sanctions against Russia added to the uncertainty in the economic outlook. On the Multi Commodity Exchange, the futures price of gold rose by 1.70 per cent to Rs 53,445 for 10 grams at 1145 hrs on March 7. The yellow metal touched an all-time high of Rs 56,200 in India in August 2020. Will gold rise to life’s high again this week amid escalating tensions between Russia and Ukraine and Vladimir Putin’s relentless imposition of sanctions on the country? let’s take a look
In the international market, the price of gold crossed $2,000 for the first time in a year and a half. The spot gold price rose 0.9 per cent to $1,986. During early trading, the price of the precious metal touched $2,000.69, the highest level since August 19, 2020. US gold futures rose 1.3 percent to $1,992.00.
The Indian rupee fell to a lifetime low in early deals on Monday. The United States and European allies were exploring sanctions on imports of Russian oil, US Secretary of State Antony Blinken said on Sunday. Crude oil prices hit a 14-year high of $140 on Sunday amid the Russo-Ukraine war. WTI also rose to $130.50 in the first few minutes of trading on Sunday. However, in the next one hour both of them retreated a bit. Brent Crude and WTI were the biggest hits in July 2008.
Gold Price Future Outlook:
“International spot gold and COMEX futures rose to $2000/oz in Asian trade this Monday morning as concerns over the Russia-Ukraine conflict pushed investors towards a safe-haven asset. Technically, if LBMA Gold rises above the $2000 level If trades, a bullish move towards $2015-$2022 levels can be seen. Support lies at $1982-$1970 levels,” said Sriram Iyer, Senior Research Analyst, Reliance Securities.
“Keeping an eye on overseas prices, domestic gold prices may strengthen from Monday morning. Technically, if MCX Gold rises above the level of April 52500, it can see a rally up to Rs 52,750-53,000. Support lies at Rs 52,350-52,200 levels.”
“The escalation of the war by Russia is affecting commodity prices across the world. The new sanctions against Russia also led to a surge in gold prices. Along with concerns over higher prices of commodities affecting inflation and slowing growth rates , Inflationary bearish fears also eased. Buy zone near – Rs 52,800 target of Rs 52,300. Sell zone below – Rs 52,000 target of Rs 51,800,” said Ravi Singh, Vice President and Head of Research, ShareIndia.
“Gold is likely to continue on a positive note for the day amid pessimistic global market sentiments and fall in US Treasury yields,” ICICI Direct Research said in a statement.
Silver Price Outlook
Silver prices rose 1.95 per cent to Rs 70,510 per kg on March 7. In Asian trading on Monday morning, international silver spot and Comex futures started with strength. Technically, if LBMA Silver rises above the $26.00 level, it could see an upward move towards the $26.18-$26.87 level. Support at $25.80-$25.00 level,” Iyer said.
“Keeping an eye on overseas prices, domestic silver prices may start higher from Monday morning. Technically, silver on MCX can see a rise above the level of 69000 in May to Rs 69,600-70,200. Support is located at Rs 68,800-68,500 level.
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