Gold and silver prices rose in the Indian markets today amid firm global rates. Gold futures up 0.65% on MCX 53,332 per 10 grams while silver jumped 1% 69,761 per kg. In international markets, gold rates hit their highest in a month as the Ukraine crisis and high inflation boosted safe-haven demand for the precious metal. Spot gold rose 0.5% to $1,984.58 an ounce, its highest since mid-March 14. Spot silver rose 0.7% to $25.87 an ounce, platinum rose 1.2% to $1,001.57 and palladium climbed 1.6% to $2,406.85.
The prospect of more sanctions on Russian energy has pushed up oil prices further. Experts say that this is already driving up the prices of raw materials, thereby increasing the demand for gold against the pick-up in inflation.
Despite firming US bond yields, safe-haven demand from the Ukraine crisis and rising inflation supported bullion, he said. Ukraine’s prime minister says the besieged city of Mariupol has not yet fallen to Russia and that Ukrainian forces will fight “to the end”. Bullion is considered a safe store of value in times of political and economic crisis.
Sleep And silver is looking strong and may test its resistance levels of $2000 per troy ounce and $27 per troy ounce respectively, says Rahul Kalantri, VP Commodities, Mehta Equities Ltd.
,gold prices There is support at $1956-1940, while resistance at $1984-2000. Silver has support at $25.40- 25.10, while resistance lies at $25.95-26.18. Gold has support in rupee terms 52,670–52,410, while resistance is at 53,220-53,450. support for silver 68,550- 67,980 while resistance is at 69,980-70,410,” he said.
Gold traders will be looking for clues as top Fed officials speak this week and Fed Chair Jerome Powell and ECB Chair Christine Lagarde will discuss the global economy at an IMF event on Thursday.
Most of the Asian markets were trading lower today, pointing to risk-averse sentiment.
“Management of inflation globally has taken priority over growth as higher commodity prices, especially crude oil and agricultural commodities, have increased the cost of living. With central banks around the world taking monetary measures to control inflationary pressures, its potential impact on growth needs to be looked at. Given the potential impact on margins and thus earnings, inflationary pressures are also weighing on the markets. Hence, any development on these fronts needs careful monitoring,” said Hemant Kaanawala, Head – Equity, Kotak Mahindra Life Insurance Company Limited. (with agency input)