Gold price in India witnessed a huge surge on Monday as the rupee had hit lifetime low amid Russia-Ukraine war. The demand for safe haven increased as ongoing war and growing sanctions against Russia added uncertainty to the economic outlook. On the Multi Commodity Exchange, gold future price surged 1.70 per cent to Rs 53,445 for 10 grams at 1145 hours on March 7. The yellow metal hit all-time high of Rs 56,200 in August 2020 in India. Will gold hit lifetime high again this week amid escalating tension between Russia and Ukraine and continuous imposition of sanctions on Vladimir Putin’s country? Let’s take a look
In the international market, gold price jumped above $2,000-mark for the first time in a year-and-a-half. Spot gold price increased 0.9 per cent to $1,986. During the early trade, the precious metal price hit $2,000.69, highest since August 19, 2020. US gold futures rose 1.3 per cent to $1,992.00.
Indian rupee hit a lifetime low in opening deals on Monday. The United States and the European allies were exploring banning imports of Russian oil, Antony Blinken, US secretary of state said on Sunday. Crude oil price soared to a near 14-year-high of $140 on Sunday amid ongoing Russia-Ukraine war. WTI also increased to $130.50 in the first few minutes of trade on Sunday. However, both of them slightly retreated over the next hour. Brent crude and WTI had hit the highest in July 2008.
Gold Price Future Outlook:
“International gold spot and COMEX futures hit $2000/ounce this Monday morning in Asian trade as concerns over Russia-Ukraine conflict pushed investors towards safe-haven assets. Technically, if LBMA Gold trades above $2000 level could witness a Bullish momentum up to $2015-$2022 levels. Support is at $1982-$1970 levels,” said Sriram Iyer, senior research analyst at Reliance Securities.
“Domestic gold prices could start stronger this early Monday morning, tracking overseas prices. Technically, if MCX Gold April above 52500 level could witness a bullish momentum up to Rs 52,750-53,000 levels. Support is at Rs 52,350-52,200 levels,” Iyer added.
“An escalation of war by Russia is impacting commodities prices worldwide. New sanctions against Russia triggered massive jumps in gold prices as well. Fears of stagflation also started to creep in, with concerns over high commodity prices impacting inflation and slowing growth. Buy Zone Near – Rs 52,300 for the target of Rs 52,800. Sell Zone Below – Rs 52,000 for the target of Rs 51,800,” said Ravi Singh, vice president and head of research, ShareIndia.
“Gold is likely to continue its positive bias for day amid pessimistic global market sentiments and waning in US treasury yields,” said ICICI Direct Research in a statement.
Silver Price Outlook
Silver price jumped 1.95 per cent to Rs 70,510 for a kilogram on March 7. “International silver spot and COMEX futures started stronger this Monday morning in Asian trade. Technically, if LBMA Silver above $26.00 could witness an upside momentum up to $26.18-$26.87 levels. Support at $25.80-$25.00 levels,” Iyer mentioned.
“Domestic silver prices could start higher this early Monday morning, tracking overseas prices. Technically, if MCX Silver May above 69000 level could witness a bullish momentum up to Rs 69,600-70,200 levels. Support is at Rs 68,800-68,500 levels,” he added.
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