Gold price in India continued to remain over Rs 50,000-mark on Wednesday. The ongoing conflict between Russia and Ukraine had pushed the yellow metal price to its highest level in a year. On the Multi Commodity Exchange, gold future was treading at Rs 50,188 for a 10 gram. Silver price also increased significantly. The precious metal future was trading at Rs 64,216 for a kilogram on February 23.
In the international market, gold price remained flat on Wednesday. Spot gold was little changed at $1,898.63 per ounce, as of 0147 GMT. US gold futures shed 0.3 per cent to $1,901.90, according to Reuters.
Russian President Vladimir Putin ordered the deployment of troops to two breakaway regions in eastern Ukraine. US President Joe Biden swiftly responded to this with sanctions to halt US business activity in the breakaway regions and ban import of all goods from those areas. United States and its allied had also prepared separate measures if Russia launched a full-scale invasion of Ukraine. Wall Street’s main indexes slumped as the prospect of harsh Western sanctions against Russia over its conflict with Ukraine kept supporting prices.
Bullion also remained supported after the US dollar dipped slightly against a basket of major currencies on Tuesday amid choppy trade.
Russian President Vladimir Putin ordered the deployment of troops to two breakaway regions in eastern Ukraine. US President Joe Biden swiftly respoded to this with sanctions to halt US business activity in the breakaway regions and ban import of all goods from those areas.
Gold Price Outlook
On gold price outlook, Sriram Iyer, senior research analyst at Reliance Securities said, “International gold spot started marginally higher, while the futures are trading weaker this Wednesday morning in Asian trade as investors asses the Ukraine situation and sanctions on Russia. Technically, LBMA Gold above $1900 level could see a bullish momentum up to $1909-$1918 levels. Support is at $1892-$1885 levels. Domestic gold prices could start flat this early Wednesday morning. Technically, if MCX Gold April trades above Rs 50,200 level it could see a Bullish momentum up to Rs 50,450 to Rs 50,600 levels. Support is at Rs 50,150 to Rs 49,980 levels.”
“The demand for safe-haven investments goes up after Russia ordered troops into breakaway regions of eastern Ukraine. US benchmark 10-year yields also tumbled on the back of the Ukraine crisis and US Federal Reserve rate hike bets. On all these factors, gold may continue it’s bull run to touch the level of Rs 52,000 in near term. Buy Zone Near – Rs 50,000 for the target of Rs 50,300
Sell Zone Below – Rs 49,800 for the target of Rs 49,600,” said Ravi Singh, vice president and head of research, ShareIndia.
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