Gold and silver prices on the Multi Commodity Exchange (MCX) made it easier to track the international market amid a strong dollar and weak progress in Russia-Ukraine peace talks, while President Vladimir Putin-led government is threatening Europe by halting contracts. Investors are also anxiously awaiting US job data for March.
Gold futures are currently traded on MCX with expiration on June 3 ₹51953 down vid ₹213 or 0.41%. While silver futures due May 5 fell ₹270 or 0.40% and traded on ₹67217.
But in India, the prices of yellow metal and silver rose in jewelers’ shops. 10 grams of gold in 22 carat is priced ₹48 100 up with ₹450, – while 100 grams in the same carat is on ₹4 81,000 higher with ₹4,500 from the previous day. At the same time, 24 carats in 10 grams and 100 grams are priced more ₹52 470 and ₹5,24,700 up with ₹490 and ₹4,900 against the previous day. As for silver, 1 kg is priced more ₹67 600 up with ₹800 in India against the previous day.
In the international market, spot gold stood steadily close to $ 1,935. So far in March, the precious metal has risen by 1.8%.
Putin is demanding that foreign buyers pay for Russian gas in rubles from Friday, otherwise their supplies may be cut, a move that European capitals rejected and which Germany said amounted to “blackmail”, according to a Reuters report. The Russian president’s decree puts Europe at risk of losing more than a third of its gas supply. Germany, which is most dependent on Russia, has already activated an emergency plan that could lead to rationing in 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 job report, which is considered to provide some clarity about the Federal Reserve’s aggressive stance on short-term interest rate hikes. The US job report for March is scheduled to be announced later today.
Geopolitical tensions and furious inflation continue to play in favor of safe havens. The US currency was supported by flows in places of refuge as Russia – Ukraine’s peace talks once again dangled without clarity.
“IIFL Securities said in its commodity report for Friday that gold stabilized on Thursday as the metal’s refuge was lifted by the Russia-Ukraine conflict and concerns about soaring inflation.”
In its forward-looking technical view, the IIFL Securities report said, “Gold prices are likely to offer new buying opportunities in the fall near the 55-period EMA on hourly charts. Daily RSI passed over the 50 mark, while the MACD histogram is printed in red with an upward trajectory. Intraday support is at 51800/51500, resistance at 52400/52700. “
For silver, the IIFL Securities report said, “The silver price managed to slide during the 21-day EMA. Short-term momentum seems to have turned sideways as fast stochastic buy signals have generated crossover buy signals. Although prices must move above yesterday’s highs to confirm buy scenario. is at 67000/66500, resistance at 67900/68300. “
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