NEW DELHI: Gold prices were largely unchanged in Monday’s session, trading near eight-month high levels, as renewed Russia-Ukraine tensions supported safe-haven demand.
Gold futures on MCX were trading flat, down 0.03 per cent or Rs 13 at Rs 50,099 per 10 grams. Silver futures were trading 0.45 per cent or Rs 287 lower at Rs 63,615 per kg.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research, Kotak Securities said that risk sentiment stabilized somewhat as US and Russia agreed to hold talks over Ukraine, however, tensions prevail as the US has maintained that Russian attack may happen soon.
“Amid other factors, mixed comments from Fed officials have also kept gold prices choppy,” he added. “Gold may remain volatile as market players react to development relating to Russia. That said, general bias may be on the upside as tensions are unlikely to ease soon.”
Buyers in major Asian hubs put off physical gold purchases last week due to a rally in prices on escalating Russia-Ukraine tensions, pushing Indian dealers to offer the highest discounts in nearly seven months.
In the spot market, the highest purity gold was sold at Rs 49,972 per 10 grams while silver was priced at Rs 63,507 per kg on Friday, according to the Indian Bullion and Jewellers Association.
The price of gold rallies for the third week as ongoing Russia-Ukraine tensions drag on investor confidence, said Ravi Singh, Vice President and Head of Research, ShareIndia.
“A further shift in risk appetite may lead to higher gold prices as bullion outperforms against other precious metals. Rising inflation may generate higher gold prices ahead of the next Fed interest rate decision,” he added.
Trading strategy
“We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,880 and resistance at $1,910 per ounce. MCX Gold April support lies at Rs 49,800 and resistance at Rs 50,500 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Global markets
Spot gold fell 0.2 per cent to $1,893.80 per ounce by 0139 GMT, retreating from $1,908.02 – its highest since June 3 hit earlier in the session. US gold futures were steady at $1,898.60.
Spot silver fell 0.7 per cent to $23.79 per ounce, platinum rose 0.3 per cent to $1,070.29 and palladium was flat at $2,346.80.