Gold price in India, saw a huge drop on Monday. On the Multi-Commodity Exchange, the gold price future tumbled by 0.24 per cent to Rs 52,750 for 10 grams at 0950 hours on March 14. The yellow metal crossed Rs 55,000-mark last week due to ongoing conflict between Russia and Ukraine. Silver price also witnessed a huge downfall on Monday. The precious metal future lost 0.42 per cent to Rs 70,072 for a kilogram on Monday. Is it right time for the investors to hold the safe-haven metal? Let’s find the answer
In the international market, gold prices fell on Monday. The sudden drop in metal prices could be attributed to the rise in US Treasury yields as investors expect the US Federal Reserve to start tightening cycle soon. Spot gold price plunged 0.7 per cent to $1,971.77 per ounce by 0303 GMT. US gold futures also plunged 0.5 per cent to $1,975.70. Benchmark US 10-year Treasury yields rose to a near one-month high. All eyes are on the US Federal Reserve meeting scheduled this week. The central bank is expected to raise interest rates by a quarter of a percentage point at a event on Wednesday. It must be noted the gold is highly sensitive to rising US interest rates. On the other hand, the global shares advanced on Monday on hopes of a respite in the Russia-Ukraine crisis.
Gold Price Future:
“International gold spot and COMEX futures have started weak this Monday morning in Asian trade dragged by firmer US Treasury yields, stronger dollar and improved risk appetite on hopes of peace between Russia and Ukraine. Technically, if LBMA Gold trades below $1990 level it could witness a downside pressure up to $1970-$1959 levels. Resistance is at $1985-$2001 levels,” said Reliance Securities Limited.
“Domestic gold prices could start weaker this early Monday morning, tracking overseas prices. Technically, if MCX Gold April trades below Rs 53,000 level it could witness a bearish momentum up to Rs 52,500-52,300 levels. Resistance is at Rs 53,000-53,200 levels,” it added.
“The war between Russia and Ukraine is impacting commodities prices worldwide. The sanctions against Russia has added fuel to the concerns and hit the gold prices. Fears of stagflation also started to creep in, due to high commodity prices impacting inflation and slowing growth. Buy Zone Near – Rs 52,700 for the target of Rs 53,000. Sell Zone Below – Rs 52,500 for the target of Rs 52,300,” said Dr. Ravi Singh, vice president and head of research, ShareIndia.
Silver Price Future
“International silver spot and COMEX futures have started weaker this early Monday morning in Asian trade. Technically, if LBMA Silver trades below $25.90 it could witness sideways to marginal downside momentum up to $25.48-$25.00 levels. Resistance at $25.80-$26.10 levels. Domestic silver prices could start weaker this early Monday morning, tracking overseas prices. Technically, if MCX Silver May trades below Rs 70,500 level it could witness bearish momentum up to Rs 69,300-68,700 levels. Resistance is at Rs 70,500-71,100 levels,” Reliance Securities added.
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