New Delhi: Gold prices in India extended gains to the 7th day in a row with prices on MCX firm above the key level of ₹50,000, supported by the safe-haven demand amid the Ukraine-Russia tensions. MCX gold futures were up 0.6% ₹50,205 per 10 gram while silver jumped 0.54% to ₹64580 per kg.
“Gold is all set to make one of the biggest fortnightly gains in recent months on the back of tensions between Russia and Ukraine despite strong minutes from FED which signaled a hawkish stance in the coming months. Technically moving forward market will give correction only if it hears something concrete on the ongoing geopolitical tension. Support is at $1850 while resistance is placed at $1,884. Traders are advised to short the metal only if it breaks last two hours low with a stop loss of day’s high and target of $1840,” says Vidit Garg, Director , MyGoldKart.
In global markets, gold rates were firm near 8-month highs as investors sought safe-haven assets amid simmering geopolitical tensions over Ukraine. Spot gold rose as much as 0.4% to $1,878.93 an ounce, its highest intraday level since June 11, according to report.
Analysts however say that a a potential headwind for non-interest bearing gold is increasing expectations of more aggressive tightening by the Federal Reserve.
Navneet Damani, Sr. Vice President – Commodity & Currency Research, Motilal Oswal Financial Services, said: “Gold continued to inch higher as the concerns surrounding Ukraine kept the metal’s safe-haven appeal intact. But expectations regarding Fed’s aggressive policy tightening move in the March meeting after a 7.5% inflation which is at 40-year highs and firm US bond yields capped some gains for the metal.”
In international markets, spot gold has risen about 5% since January 31, in the backdrop of Ukraine crisis.
Among other precious metals, spot silver gained 0.3% to $23.91 per ounce and platinum added 0.1% to $1,029.19.