Gold prices today surge to highest in over 1 month, silver rates jump

Gold and sliver prices today moved higher in Indian markets amid firm global rates. On MCX, gold futures rose 0.65% ₹53,332 per 10 gram while silver jumped 1% to ₹69,761 per kg.  In international markets, gold rates jumped to their highest in over a month as the Ukraine crisis and elevated inflation boosted the safe-haven demand of the precious metal. Spot gold was up 0.5% at $1,984.58 per ounce, highest since mid-March 14. Spot silver rose 0.7% to $25.87 per ounce, platinum gained 1.2% to $1,001.57, and palladium climbed 1.6% to $2,406.85.

The possibility of more sanctions on Russian energy has pushed up oil prices further. That’s adding to already elevated raw material prices, fueling demand for gold as a hedge against accelerating inflation, say experts.

Despite strengthening US bond yields, safe-haven demand triggered by the Ukraine crisis and mounting inflation kept bullion supported, they add. Ukraine’s prime minister says the besieged city of Mariupol hasn't yet fallen to Russia and the Ukrainian forces there will fight “to the end.” Bullion is considered a safe store of value during times of political and economic crisis.

Gold and silver are showing strength and could 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 have support at $1956-1940, while resistance at $1984-2000. Silver has support at $25.40- 25.10, while resistance is at $25.95-26.18. In rupee terms gold has support at ₹52,670–52,410, while resistance is at ₹53,220–53,450. Silver has support at ₹68,550- 67,980 while resistance is at ₹69,980–70,410,” he added.

Gold traders will be looking for clues on as top Fed officials speak this week and Fed Chair Jerome Powell and ECB President Christine Lagarde will discuss global economy at IMF event on Thursday.

Pointing to the risk-averse sentiment, most Asian markets were lower today. 

“Globally managing inflation has taken precedence over growth as higher commodity prices especially that of crude oil and agriculture commodities has led to surge in cost of living. With central banks around the world taking monetary measures to contain inflationary pressures, its possible impact on growth needs to be watched. Inflationary pressures have also been weighing on markets too given the possible impact on margins and thus earnings. Hence, any developments on these fronts need careful monitoring,” said Hemant Kanawala, Head – Equity, Kotak Mahindra Life Insurance Co. Ltd. (With Agency Inputs)