Gold price in India remained below Rs 51,000-mark on Friday. The safe-haven metal hit a new high in the previous session after Russia had announced to start military operations in Ukraine. On the Multi Commodity Exchange, gold futures tumbled 1.06 per cent to Rs 50,999 for 10 grams at 0920 hours on February 25. Silver price also saw a sharp drop on Friday. The precious metal futures slipped 1.83 per cent to Rs 64,821 for 100 grams on Friday.
Gold price rebounded on Friday after United States President Joe Biden had hit Russia with a series of new sanctions against Russia. In the international market, spot gold rose 0.3 per cent to $1,909.06 per ounce by 0204 GMT. US gold futures fell 0.8 per cent to $1,910.70.
“If current sanctions are the limit of the response, the economic impact is limited. So, investors covered their shorts in stocks, and this weighed on bullion. However, Russia’s invasion of Ukraine is a game changer and demand for safe-havens will remain elevated and gold prices will likely see strong support over the short term,” said Sriram Iyer, senior research analyst at Reliance Securities.
“Gold prices rallied as demand for safe haven assets went up after
Russia invaded Ukraine. Gold is likely to trade with positive bias for the day as demand for safe haven asset rises during the times of stress. Additionally,
investors fear that rising commodity prices will add to inflationary pressure and weaken the global economic recovery. Markets will keep an eye on US PCE Price Index data, which is likely to show that inflation remained elevated,” said ICICI Direct in a report.
Gold Price Future: What Investors Must Know
“International gold spot has started higher, while COMEX futures have started weaker this Friday morning in Asian trade as investors will look cues from inflation data tonight. Technically, if COMEX Gold April trades below $1927.13 level it could witness a bearish momentum up to the support zone at $1877.77-$1829.23. A trade above could push prices to the resistance zone at $1975.67-$2025.03. Domestic gold prices could flat to weaker this early Friday morning, tracking COMEX prices.Technically, if MCX Gold April trades below Rs 51,715 level it could witness a bearish momentum up to the support zone at Rs 50,630-49,715. A trade above could push prices to the resistance zone at Rs 52,630-53,710,” Iyer said.
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