Gold Price in India Hits Rs 52,000; Highest in Over a Year. What Investors Should Do

Gold price in India crossed Rs 52,000-mark on Friday. The yellow metal price has jumped sharply in the last few days on account of escalating tension between Russia and Ukraine. On the Multi-Commodity Exchange, gold futures increased 0.45 per cent to Rs 52,001 for 10 grams at 1250 hours on March 4. Silver price also jumped on Friday. The precious metal futures were up by 0.55 per cent to Rs 68,279 for a kilogram on March 4.

In the international market, Spot gold jumped 0.28 per cent to $1,941.20, according to Investing.com. In the international market, Spot gold jumped 0.28 per cent to $1,941.20, according to Investing.com. Ukrainian President Volodymyr Zelensky accused Moscow on Friday of resorting to “nuclear terror” and wanting to “repeat” the Chernobyl disaster.

Investors are keenly waiting for more clues from US Fed chair Jerome Powell on US interest rate hikes. The yellow metal has often been considered as a hedge against inflation and political uncertainty. However, rising US interest rates would increase the opportunity cost of holding non-interest bearing bullion. Powell reiterated that the US Fed was proceeding largely as planned to raise the target overnight federal funds rate and reduce the size of its balance sheet in order to tame inflation that is currently the highest it has been since the 1980s.  However, he also mentioned to back a 0.25 per cent rate increase when the Fed meets March 15-16, effectively putting to rest debate over starting a post-pandemic round of rate hikes with a larger than usual half-point increase.

Gold Price Future Outlook

“International gold spot and COMEX futures could trade stronger this Friday morning in Asian trade as investors moved towards the safe-haven assets after Russia attacked largest nuclear power plant in Ukraine and Europe. Technically, if COMEX Gold April trades above $1934.53 level it could continue its bullish momentum up to the resistance zone at $1945.97-$1956.03. A trade below could pull prices to the support zone at $1924.47-$1913.03,” said Sriram Iyer, senior research Analyst at Reliance Securities

“Domestic gold prices could start stronger this early Friday morning, tracking overseas prices. Technically, if MCX Gold April trades above 51700 level it could continue its bullish momentum up to the resistance zone at Rs 52,015-52,265. A trade below could pull prices to the support zone at Rs 51,455-51,145,” he added.

“The Federal Reserve is expected to start raising rates with only a quarter point move, which means the central bank is even further behind the curve on in its inflation fight and that should be good for gold. Investors are looking out for more clues on US interest rate hikes as Fed Chair Jerome Powell’s Congress testimony enters its second day. Buy zone near – Rs 51,500 for the target of Rs 51,800. Sell zone below – Rs 51,300 for the target of Rs 51,000,” said Ravi Singh, vice president and head of research, ShareIndia.

Silver Price Outlook

“International silver spot and COMEX futures could trade higher this Friday morning in Asian trade. Technically, if COMEX Silver May trades above $25.320 level it could continue its bullish momentum up to the resistance zone at $25.560-$25.910. A trade below could pull prices to the support zone at $24.970-$24.725. Domestic silver prices flat to higher this early Friday morning, tracking overseas prices. Technically, if MCX Silver May trades above Rs 68,125 level it could continue its bullish momentum up to the resistance zone at Rs 68,560-69,200. A trade below could pull prices to the support zone at Rs 67,480-67,050,” Iyer added.

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