Gold price in India hits Rs 51,000-mark on Thursday after Russian President Vladmir Putin had announced to start ‘military operations’ in Ukraine’s Donbass region. On the Multi Commodity Exchange (MCX), gold futures jumped 2.02 per cent to Rs 51,396 for 10 grams at 1100 hours on February 24. Silver price also witnessed a sharp rally on Thursday. The precious metal price rose 2 per cent to Rs 65,876 for a kilogram on Thursday.
Rising tension between Russia and Ukraine has spooked the market all over the world. “Gold is likely to trade with a positive bias for the day amid a flare-up in tension between Russia and Ukraine,” said ICICI Direct in a report.
In the international market, Spot gold increased 1.9 per cent to $1,943.86 per ounce by 0428 GMT, its highest level since early January 2021. US gold futures climbed 2 per cent to $1,949.20. The yellow metal has has risen about 8 per cent in February so far. US bond yields and stocks crash while crude oil price and dollar rocketed after Russian invasion in Ukraine.
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Gold Price Outlook:
“Gold panic buying due to inflation and geo-political risks has been halted by a rise in Treasury yields following the first set of United States and European sanctions on Russia for sending troops into eastern Ukraine. The US, European Union and Britain announced plans to target banks and elites while Germany halted a major gas pipeline project from Russia. However, it may remain in bullish zone for some more trading sessions. Buy Zone Near – Rs 50,100 for the target of Rs 5,0400. Sell Zone Below – Rs 49,800 for the target of Rs 49,500,” said Ravi Singh, vice president and head of research, ShareIndia.
“International gold spot and futures have started higher this Thursday morning in Asian trade as tensions around Ukraine intensified, boosting demand for the haven asset. Technically, if COMEX Gold April trades above $1904.80 level it could witness a Bullish momentum up to the resistance zone at $1918.50-$1926.60. A trade below could pull prices to the support zone at $1896.70-$1883.00,” said Sriram Iyer, senior research analyst at Reliance Securities.
Domestic gold prices could start higher this early Thursday morning, tracking overseas prices. Technically, if MCX Gold April trades above Rs 50,250 level it could witness a Bullish momentum up to the resistance zone at Rs 50,545-50,710. A trade below could pull prices to the support zone at Rs 50,085-49,785, Iyer added.
Silver Price Outlook
On silver price future, Iyer said, International silver spot and futures started marginally higher this Thursday morning in Asian trade, tracking gold prices. Technically, if COMEX Silver May trades above $24.450 level it could witness a Bullish momentum up to the resistance zone at $24.805-$25.016. A trade below could pull prices to the support zone at $24.240-$23.885. Domestic silver prices could start stronger this early Thursday morning tracking the overseas prices. Technically, if MCX Silver May trades above Rs 65,170 level it could witness a Bullish momentum up to the resistance zone at Rs 65,640-65,890. A trade below could pull prices to the support zone at Rs 64,920-64,450.
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