Gold price in India hit Rs 50,000-mark on Thursday following the global cues. In the international market, gold price jumped to a nearly eight-month high amid escalating Russia-Ukraine conflict. On the Multi Commodity Exchange (MCX), the gold futures rose to 0.76 per cent to Rs 49,997 per 10 grams at 1700 hours on February 17. Silver price also witnessed a huge rise on Thursday. The precious metal increased 0.63 per cent to Rs 63,697 for a kilogram.
The United States and NATO said Russia was still building up troops around Ukraine on Wednesday despite Moscow’s insistence it was pulling back, questioning President Vladimir Putin’s stated desire to negotiate a solution to the crisis. Data showed US retail sales rebounded sharply in January, but higher prices could blunt the impact on economic growth this quarter. Meanwhile, prices also got a lift from a slightly dovish Fed minutes which showed that Federal Reserve officials last month agreed that, with inflation tightening its grip on the economy and employment strong, it was time to raise interest rates, but also that any decisions would depend on a meeting-by-meeting analysis of inflation and other data. The US Dollar fell after the release of the minutes and lent support, however the benchmark bond ended steady above 2 per cent and capped further upside.
Gold Price Outlook
“International gold spot and futures started flat this early Thursday morning in Asian trade as dovish Fed minutes weigh on dollar and as the Ukraine crisis boosted demand for the safe-haven metal. Technically, if April COMEX Gold trades above $1866.00 level, it could continue the bullish momentum up to the resistance zone at $1880.13-$1888.77. A trade below could pull the prices to the support zone at $1857.33-$1843.17. Domestic gold prices could start flat this early Thursday morning tracking the overseas prices. Technically, if MCX Gold April trades above Rs 49,510 level, it could witness a bullish momentum up to the resistance zone at Rs 49,770-49,920. A trade below could pull the prices to the support zone at Rs 49,360-49,100,” said Sriram Iyer, senior research analyst at Reliance Securities.
“Gold prices are witnessing profit booking amid the growing tensions of possible attacks by Russia in Ukraine. It may go up to 48800 temporarily as the tensions are not easing so gold will ultimately remain in bullish hands for some more time. Buy Zone Above – Rs 49,500 for the target of Rs 49,800. Sell Zone Below – Rs 49,200 for the target of Rs 48,800,” said Ravi Singh, vice president and head of research, ShareIndia.
Silver Price Outlook
On silver price, Iyer saidm, “International silver spot and futures have started flat this early Thursday morning in Asian trade, tracking gold prices.
Technically, if March COMEX Silver trades above $23.520 level, it could witness a bullish momentum up to the resistance zone at $23.755-$23.900. A trade below could pull the prices to the support zone at $23.375-$23.140. Domestic silver prices could start flat Thursday morning tracking overseas prices. Technically, if MCX Silver March trades above Rs 63,200 level, it could witness a bullish momentum up to the resistance zone at Rs 63,580-63,860. A trade below could pull the prices to the support zone at Rs 62,900-62,500.
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