New Delhi: Gold prices today were firm today, March 9, and rose above the key ₹55,000 level while silver rates also surged today. On MCX, gold futures were up 1.4% to ₹55,190 per 10 gram while silver rose 1.8% to ₹72,698 per kg.
In global markets, gold rates were steady today after rising to a 19-month peak in the previous session. Spot gold was flat at $2,053.99 per ounce. Spot silver was up 1% at $26.66 per ounce, after touching a near nine-month high on Tuesday. In global markets, gold had hit a record of $2,072 in August 2020 while in India, it had risen to all-time high of ₹56,200 per 10 gram.
“Gold and silver rallied after the US banned Russian oil and gas imports. Global equity markets rallied and profit-taking was seen in both precious metals from higher levels. We expect both precious metals to remain volatile in today’s session but hold its support levels. Gold has support at $2024-1995, while resistance at $2064-2082 per troy ounce. Silver has support at $26.40-26.00, while resistance is at $27.14-27.55 per troy ounce,” said Rahul Kalantri, VP Commodities, Mehta Equities. “In rupee terms, gold has support at ₹53,154–52,450, while resistance is at ₹55,440–56,240. Silver has support at ₹69650- 68,420 while resistance is at ₹73,000–74,180,” he added.
Analysts say that Ukraine crisis is supporting the safe-haven demand for gold while stronger US dollar and firm US bond yields are capping gains. US Treasury yields surged as Federal Reserve Chairman Jerome Powell supported raising rates this month, while the dollar held firm near Monday’s high in more than 1-1/2 years.
Gold is sensitive to rising US interest rates, which increase the opportunity cost of holding non-yielding bullion. Higher rates also boost the dollar, pressuring the greenback-priced metal.
Domestic brokerage Geojit said bullish rallies in gold may continue while prices stay above $2000. “Meanwhile, consistent trades below $1,880 would negate the view,” it added. For silver, “expect choppy with positive bias as long as it stays above $25.20. Trend reversal point is seen at $23,” Geojit said.
“Market players are also keeping an eye on implication of recent development on monetary policy stance of major central banks. Market players have played down possibility of aggressive moves by central banks however rising inflationary pressure on back of soaring commodity prices may pressurize central banks to act soon,” Kotak Securities said in a note.
“Commodities have rallied sharply on supply risks associated with Russia. However, we are now seeing increased volatility as market players try to gauge implication of higher price,” it added.