NEW DELHI: Gold prices edged lower while silver advanced in Friday’s trade. Gold futures on MCX for April delivery were trading at Rs 52,078 per 10 gram, down Rs 18 or 0.03 per cent. Holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, stood at 1,087.66 tonnes.
Silver futures for May delivery were trading Rs 143 or 0.21 per cent higher at Rs 69,320 per kg.
The leaders of G7 — the United States, Britain, Canada, France, Germany, Italy and Japan —said they were restricting the Russian Central Bank’s use of gold in transactions.
Trading strategy
Analysts noted that gold is consolidating in a narrow range following a sharp decline. A decisive breakout at Rs 52,000 will resume the uptrend, taking it higher to Rs 52,700-53,800. The immediate support on the downside is at Rs 51,000, they said.
In the case of silver, it is on the verge of a breakout from a sideways consolidation. A successful breakout will resume the uptrend taking it to levels of Rs 70,000-70,800 they said, adding that downside support for gold exists at Rs 67,100.
In case of international gold, Rahul Kalantri, VP Commodities at Mehta Equities, said the yellow metal has support at $1,937.40-1,922 and resistance at $1,976-1,988 per troy ounce.
Silver, he said, has support at $25.50-25.25 and resistance at $25.98-26.20. “In rupee terms, gold has support at Rs 51,820–51,650, while resistance is at Rs 52,220–52,330. Silver has support at Rs 68,474- 68,120 and resistance at R s69,635–70,100,” Mehta Equities said.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities, said supporting gold price is safe haven buying, virus concerns, inflationary pressure, continuing ETF inflows and US restrictions on gold dealings with Russia. “However, weighing on price is higher bond yields and Fed’s aggressive monetary tightening stance. Gold has broken past the $1950/oz level which shows strong positive momentum however a sustained rise may be challenged by Fed’s hawkish stance and some pause in crude prices.”
Global markets
Spot gold was up 0.2 per cent at $1,960.84 per ounce. US gold futures were flat at $1,961.70, Reuters reported. Spot silver rose 0.5 per cent to $25.64 per ounce, while platinum gained 0.6 per cent to $1,026.90 and palladium added 0.2 per cent to $2,527.69.