Gold and silver prices on the Multi Commodity Exchange (MCX) helped the international market watch amid a strong dollar and lackluster progress in peace talks between Russia and Ukraine as the government led by President Vladimir Putin threatens Europe by interrupting the contracts. Additionally, investors are eagerly awaiting US jobs data for March.
At MCX, currently, gold futures expiring on June 3 are trading at ₹51953 down by ₹213 or 0.41%. While silver futures expiring on May 5 fell slightly from ₹270 or 0.40% and were trading at ₹67217.
However, in India, the prices of yellow metal and silver have increased in jewelry stores. 10 grams of 22 karat gold are priced at ₹48,100 more ₹450, while 100 grams in the same carat are available at ₹4,81,000 higher than ₹4,500 since the day before. Meanwhile, 24 carats in 10 grams and 100 grams are priced at ₹52,470 and ₹5,24,700 per ₹490 and ₹4,900 against the day before. As for money, 1 kg is priced at ₹67,600 up to ₹800 in India against the day before.
In the international market, spot gold remained stable near $1,935. So far in March, bullion is up 1.8%.
Putin is asking foreign buyers to pay for Russian gas in rubles from Friday or have their supplies cut off, a move European capitals have rejected and Germany has called “blackmail”, according to a Reuters report. The Russian president’s decree leaves Europe facing the prospect of losing more than a third of its gas supply. Germany, the most dependent on Russia, has already activated an emergency plan that could lead to rationing of Europe’s largest economy.
In the interbank foreign exchange market, the dollar extended its gains against a basket of other currencies ahead of the US jobs report which is expected to provide some clarity on the Federal Reserve’s aggressive approach to rate hikes at short term. The March US jobs report is expected later today.
Geopolitical tensions and galloping inflation continue to work in favor of safe havens. The US currency was supported by safe-haven flows as peace talks between Russia and Ukraine once again sway without clarity.
IIFL Securities, in its Friday Commodities Mantra report, said gold stabilized on Thursday as the appeal of the safe-haven metal was lifted by the Russian-Ukrainian conflict and concerns over sky-high inflation. .”
In its technical view looking ahead, the IIFL Securities report said, “Gold prices are likely to offer further downside buying opportunities near the 55-period EMA on the chart. The daily RSI broke above the 50 mark, while the MACD histogram prints in the red with an upward sloping trajectory. Intraday support lies at 51800/51500, resistance at 52400/52700.”
For silver, the IIFL Securities report said: “Silver prices managed to drift below the 21-day EMA. Short-term momentum appears to have reversed as the stochastic has generated a crossover buy signal. Although prices need to clear yesterday’s high to confirm buy. Intraday support lies at 67000/66500, resistance at 67900/68300.”