In view of the rise in international rates, gold and silver prices remained firm in the Indian markets today. Gold futures jump 0.8% to hit 3-month high on MCX 49,506 while silver rose 1% 63,630 per kg. Analysts say geopolitical tensions around Ukraine are likely to support gold. In global markets, spot gold was trading near a 3-month high of $1,859 an ounce. But gains remained muted as the dollar and safe-haven currencies edged higher, while yields on the benchmark US 10-year Treasury note remained higher.
Higher yields affect the appeal of bullion by increasing the opportunity cost of holding interest-free gold, while a stronger dollar makes it less attractive to foreign buyers.
In other precious metals, Silver It gained 0.7% to $23.74 an ounce, while platinum gained 0.8% to $1,036.14.
Asian stock markets were under strong pressure today, while crude extended gains as geopolitical risks on Ukraine rippled through global financial markets, raising demand for safe-haven assets.
“In dollar terms, we expect both the precious metals to remain positive this week on the back of Russia-Ukraine tensions and firming global oil prices. Gold levels near $1,884 per troy ounce and silver levels at $24 per ounce. Expected testing. Gold has support at $1845-1834, while resistance is at $1877-1892 per troy ounce. Silver’s support is at $23.30-23.10, while resistance is at $23.80-24.00 per ounce,” Mehta Prashant Taapsee, Vice President (Research) Equities said.
“In Rs. Sleep is supported on 48,793–48,473, while resistance is at 49,284-49,455. support for silver 62,324- 61,659 while resistance is at 63,357-63,725. Traders are suggested to trade in a range with a strict stop-loss.” (With Agency Input)
The US has warned that Russia’s invasion of Ukraine could be imminent, while weekend talks between US President Joe Biden and Russian President Vladimir Putin failed to break any new ground. Meanwhile, the focus will be on German Chancellor Olaf Scholz’s visit to Ukraine today and to Russia for diplomatic talks the next day.
Geopolitical tensions are another blow to riskier asset markets that are already worried about high inflation and the prospect of aggressive Federal Reserve interest rate hikes. (with agency input)
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