Profit booking at higher levels and weak Gold price Rates fall caused gold prices to drop more than 1%. According to Reuters, gold prices fell from a three-week peak on global markets as traders recalculated their expectations for rate reduction by the Federal Reserve and investors took profits while they awaited further information to assess the interest rate future.
Gold prices and demand for safe havens have been bolstered by geopolitical tensions, which are fanned by fresh fears of nuclear threats in the ongoing conflict between Russia and Ukraine.
For present, gold is projected to trade in a band of ₹77,000– ₹78,300 on MCX. “High volatility is expected,” stated Jateen Trivedi, LKP Securities’ VP Research Analyst for Commodities and Currency.
Gold prices were also impacted by a substantial increase in the stock market. After strong advances of more than 2 percent in the previous session, market benchmarks the Sensex and the Nifty 50 both saw a surge of more than 1%.
Gold should be purchased on dips around ₹77,300 with a stop loss of ₹77,040 for the aim of ₹78,000. Silver should be purchased on dips around ₹90,300 with a stop loss of ₹89,650 for the target of ₹91,800, according to Manoj Kumar Jain of Prithvifinmart Commodity Research.
In the current session, silver has support at $31.05-30.70 and resistance at $31.60-31.88 per troy ounce, while gold has support at $2,694-2,670 and resistance at $2,728-2,745 per troy ounce. On the MCX, gold has support around ₹77,330-77,040 and resistance at ₹77,880-78,220, while silver has support at ₹90,150-89,500 and resistance at ₹91,400-92,200,” added Jain. The Russia-Ukraine war, which began on February 22, 2022, has been raging for more than 1,000 days and continues to have a significant impact on the bullion market, according to Renisha Chainani, head of research at Augmont-Gold For All. Given that gold prices have risen too much, profit-booking and consolidation are likely to occur this week. Crucial levels of support are the 50 DMA at $2,650 (₹75,500). As long as the price of gold is over $2,550 (₹73,700), it is in an upward trend. Until these levels are maintained, dip-buying is probably going to continue,” Chainani stated.