Gold Forecast: Tensions between Russia and Ukraine pushed the gold price to an almost two-month high at the end of the week.
On the MCX (Multi-Commodity Exchange), gold price future increased .30 per cent to Rs 49.102 for 10 grams at the end of this week. Silver price, however saw a significant drop. The precious metal future dropped 0.39 per cent to Rs 63,020 for a kilogram.
In the international market, spot gold price surged 1.6 per cent to $1,865.31 (high on Friday 11, 2022) per ounce by 2.27 02:27 p.m. ET (1927 GMT), its highest level since November 19. US gold futures settled up 0.3 per cent at $1,842.1.
Will Gold Price in India Jump in the Near Future?
Gold is traditionally considered as a hedge metal against inflation. The US consumer price index soared 7.5 per cent in the 12 months through January, biggest yearly increase 1982. The surge in inflation boosted the yellow metal’s appeal amid a weaker dollar.The escalating tension between Russia and Ukraine also lifted the demand for safe-haven metal. The Ukraine conflict already spooked the global market. US equities had declined in the previous session.
The inflation data will increase the pressure on the US Federal Reserve to raise interest rate aggressively. Federal funds rate futures increased the chances of a 50-bps tightening by the US Federal Reserve at next month’s policy meeting following the inflation data, believed analysts.
Gold Price Hike: What Analysts Say
“Technically, if April COMEX Gold trades below $1834.00 level, it could witness a bearish momentum up to the support zone at $1820.03-$1812.67. A trade above could push the prices to the resistance zone at $1846.53-$1855.67. Technically, if MCX Gold April trades below Rs 48,830 level witness a bearish momentum up to the support zone at Rs 48,675-48,395. A trade above could push the prices to the resistance zone at Rs 49,115-49,270,” said Senior Research Analyst at Reliance Securities.
“Gold and silver charts are showing strength. Momentum indicator RSI also indicating the same in hourly as well as daily chart. So traders are advised to create fresh longs near given support levels. Traders should focus important technical levels given below for the day: April Gold closing price Rs 48,955, Support 1 – Rs 48,700, Support 2 – Rs 48,500, Resistance 1 – Rs 49,000, Resistance 2 – Rs 49,200. March Silver closing price Rs 63,266, Support 1 – Rs 62,500, Support 2 – Rs 62,000, Resistance 1 – Rs 63,400, Resistance 2 – Rs 63,800,” said AVP, research commodities.
MCX Silver Price Future in India
“In short run, Fed’s policy decisions and volatility in yield and dollar could weigh on the prices. Although rising inflationary pressure, geo-political uncertainties, a push in overall safe haven appeal could be supportive for the silver price. The volatility could bring the prices to lows of Rs 60,000 followed by Rs 58,000 also, whereas immediate resistance is at Rs 65,500 and sustained break above same could take the prices higher towards Rs 67,500,” Motilal Oswal said in a note. It further mentioned that any such fall should be a good opportunity to accumulate for a 25 per cent upside targeting Rs 72,250 followed by Rs 80,000 over the next 12-15 months.
From second week of February, rupee is expected to calm down against the US dollar that will support gold price rally in short term.
However, if the gold price rally continues in spot market, it may go up to ₹50,000 to ₹50,500 per 10 gm levels by end of February 2022,” concluded Neal Bhai of Gold Silver Reports.
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