Gold prices today surge to near 3-month high, eye ₹50,000 per 10 gram
1 min read 14 Feb 2022, 09:07 AM ISTAnalysts say that gold rates are likely to remain supported by geopolitical tensions around Ukraine.
PremiumGold and silver prices were firm today in Indian markets, tracking gains in international rates. On MCX, gold futures jumped 0.8% to near 3-month high of ₹49,506 while silver rose 1% to ₹63,630 per kg. Analysts say that gold is likely to remain supported by geopolitical tensions around Ukraine. In global markets, spot gold was near 3-month highs of $1,859 per ounce. But gains were muted as the dollar and safe-haven currencies held gains, while yields on the benchmark U.S. 10-year Treasury note edged higher.
Higher yields dent the appeal of bullion by raising the opportunity cost of holding non-interest-paying gold, while a firmer dollar makes it less attractive for overseas buyers.
Among other precious metals, silver gained 0.7% to $23.74 per ounce, while platinum was up 0.8% at $1,036.14.
Asian equities were under strong pressure today while crude oil extended gains as geopolitical risks over Ukraine rippled through global financial markets, spurring demand for safe-haven assets.
“In dollar terms we expect both precious metals remain positive this week due to Russia-Ukraine tensions and strength in global oil prices. Gold is expected to test $1,884 per troy ounce and silver could also test $24 per troy ounce levels. Gold has support at $1845-1834, while resistance at $1877-1892 per troy ounce. Silver has support at $23.30-23.10, while resistance is at $23.80-24.00 per troy ounce," said Prashanth Tapse, Vice President (Research), Mehta Equities.
“In rupee terms, gold has support at ₹48,793–48,473, while resistance is at ₹49,284–49,455. Silver has support at ₹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," he added. (With Agency Inputs)
The US has warned that a Russia invasion into Ukraine invasion 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 visit to Ukraine today and to Russia on the next day for diplomatic talks.
The geopolitical tensions is another blow to risk assets markets that are already skittish about high inflation and the prospect of aggressive Federal Reserve interest-rate hikes. (With Agency Inputs)
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