The price of gold rose on February 24 on the international market towards a nine-month high hit this week, as investors seeking protection in safe havens after Russia ordered military action in Ukraine this morning and the west imposed more sanctions on Moscow.
In multi-commodity exchanges (MCX), gold contracts jumped 1.88 percent at Rs 51,328 for 10 grams at 9.46 in the morning and spiny silver 2.05 percent to trade at Rs 65,910 per kilogram.
The Comex Gold traded 1 percent higher near $ 1930 / oz after a 0.4 percent increase yesterday. Gold has increased on the purchase of safe haven when Russian-Ukrainian tensions increase with our warning of attacks that will occur and bring fresh restrictions on Moscow. The ETF inflow also shows interest in purchasing metals.
However, weighing at prices is an advantage in US dollars and expectations of Fed monetary tightening.
Gold may remain fluctuating because market participants respond to developments related to Russia. Unless there is a serious effort to resolve this problem, the purchase of safe haven can store supported prices, said Ravindra Rao, CMT, Lepat, VP-Head commodity research in the Securities box.
Trade strategy
Manoj Kumar Jain from Prithvi Finmart Commodity Research
The price of gold and silver is extended increase after the increasing conflict between Russia and Ukraine. The two precious metals settled in a positive tone in the international market on Wednesday. We hope both precious metals to continue to show strength in the upcoming session. Gold prices can test $ 1935 per troy ounce and silver can test $ 25 per troy ounce level. Yellow metal has support at $ 1900-1888 per troy ounce and resistance at $ 1922-1935 per troy ounce while silver has support at $ 24.30-24.00 per troy ounce and resistance at $ 24.84-25.10 per troy ounce .
In MCX, gold has support at Rs 50100-49920 and resistance at Rs 50600-50850 while silver has support at RS 64220-63800 and resistance at RS 64950-655500. We suggest buying gold at dips around RS 50100 with RS 49900 stop closure for RS 50800 and silver targets around Rs 64200 with the Hospital RS 63600 with the RS 65200 target.
