Precious metals to stay volatile, may witness short covering, bargain buying at lower levels
Manoj Kumar Jain, Prithvi Finmart Commodity Research expects gold and silver prices to remain volatile in today’s session and could show some short coverings and bargain buying at lower levels.
Gold prices ticked up on Tuesday in the international markets as the dollar eased off a six-week high, while traders waited for more economic data to gauge the US Federal Reserve’s rate-hike strategy.
Spot gold was up 0.1 percent at $1,843.23 per ounce, as of 0046 GMT. US gold futures firmed 0.1 percent to $1,851.80.
At 10:07 am, gold was down 0.14 percent on the Multi Commodity Exchange (MCX) at Rs 56,136 for 10 grams, while silver was trading lower by 0.35 percent at Rs 65,520 per kilogram.
Manoj Kumar Jain, Prithvi Finmart Commodity Research
Gold and silver settled on a mixed note in the international markets. Gold April futures contract settled at $1,850.30 per troy ounce, down by 0.06 percent while silver March futures contract settled at $21.82 per troy ounce, up by 0.46 percent. Domestic markets also settled on a mixed note.
Market is waiting for more clues from the US Fed. This week’s speech of the US Fed officials could give more clarity on the US Fed rate hikes in its March month policy meetings. The surprise visit of the US President to Ukraine also gives a signal of further escalation of tensions between Russia-Ukraine.
We expect gold and silver prices to remain volatile in today’s session and could show some short coverings and bargain buying at lower levels. Gold could hold its support level of $1822 per troy ounce and silver could hold the $21.20 per troy ounce level. Gold has support at $1838-1822, while resistance is at $1866-1878 per troy ounce. Silver has support at $21.55-21.20, while resistance is at $22.10-22.34 per troy ounce.
At MCX, gold has support at Rs 56,000-55,770 and resistance at Rs 56,440-56,650 while silver has support at Rs 65,220-64,800 and resistance at Rs 66,100-66,660. We suggest buying silver on dips around Rs 65,220 with a stop loss of Rs 64,700 for a target of Rs 66,100.
Rahul Kalantri, VP Commodities, Mehta Equities
Gold and silver traded in a tight range on February 20 after last week’s fall. US markets were closed on Monday and the dollar index also traded in a range. The market is waiting for more clues from the US Fed. This week’s speech by the US Fed officials could give more clarity on the US Fed rate hikes in its next month’s policy meetings. Rising geopolitical tensions could provide critical support for gold and push bullion prices higher.
We expect gold and silver to remain volatile in today’s session. Gold has support at $1828-1819 while resistance is at $1852-1864. Silver has support at $21.55-21.35, while resistance is at $21.98-22.15. In rupee terms, gold has support at Rs 55,980-55,810, while resistance is at Rs 56,520, 56,700. Silver has support at Rs 65,150-64,520, while resistance is at Rs 66,190–66,580.
NS Ramaswamy, Head of Commodities, Ventura Securities
COMEX Gold is trading in a narrow range in anticipation of more cues on monetary policy from the minutes of the Federal Reserve’s February meeting. A rise in US Treasury yields and the dollar weighed heavily on gold. COMEX gold has support near $1,834 while resistance is at $1,860.
With agency inputs
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