Gold prices were trading higher in India on Wednesday, even as yellow metal rates inched lower globally. On Multi Commodity Exchange, gold April futures were trading Rs 136 or 0.3 per cent up at Rs 50,949 per 10 grams. Silver May futures were ruling at Rs 67,155 per kg, up Rs 208 or 0.3 per cent on MCX. Internationally, yellow metal prices inched lower, hovering near a one-month low hit in the previous session, as Russia-Ukraine peace talks pointing towards progress dimmed bullion’s safe-haven demand, though a weaker dollar and a drop in yields limited losses, according to Reuters. Spot gold was down 0.2% at $1,916.30 per ounce, while U.S. gold futures were up 0.2% at $1,916.60.
Navneet Damani, Sr. Vice President – Commodity & Currency Research, Motilal Oswal Financial Services
Gold inched lower hovering near a one month low hit in the previous session, as Russia-Ukraine peace talks pointing towards progress, along with rising bond yields dimmed bullion’s safe-haven demand. Russia promised to scale down military operations around Kyiv and another city but the United States warned the threat was not over as Ukraine proposed adopting a neutral status in a sign of progress at face-to-face negotiations. Even the UK confirmed that military operations in kyiv were reduced. Although, Russia ‘s minister also mentioned that de-escalation does not mean cease fire and it will take a long time to reach a mutually agreeable decision between the two countries. News regarding progress in the talks has been eroding the war premium for both gold and silver prices. Amidst a hit in the sentiment, Holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, slipped 0.2% to 1,091.44 tonnes on Tuesday. Focus today will be on the U.S. GDP, Core PCE and private payroll data which could trigger further volatility in the market. Broader trend on COMEX could be in the range of $1870- 1955 and on domestic front prices could hover in the range of Rs 51,050- 51,800
Tapan Patel, Senior Analyst — Commodities, HDFC Securities
Gold prices traded firm on Wednesday with spot gold prices at COMEX were trading 0.22% up near $1923 per ounce in the morning trade. Gold prices at MCX for June contract opened higher near Rs. 51542 per 10 gram following global cues. Gold prices witnessed high volatility with prices falling to $1890 levels and rebounding back to $1920. Gold prices declined with peace talks progressing between Russia and Ukraine. However, a plunge in US bond yields and weaker dollar boosted buying from support levels. The 10 year US Treasury yields fell by 1.91% to 2.35% on Wednesday while the dollar index declined to 98.20 levels. We expect Gold prices to trade sideways to up for the day with COMEX Spot gold support at $1890 and resistance at $1940 per ounce. MCX Gold June support lies at Rs. 51200 and resistance at Rs. 51800 per 10 gram.
Bhavik Patel, Commodity & Currency analyst, Tradebulls Securities
Gold prices were volatile yesterday after Russia promised to de-escalate the situation amid the ongoing peace talks. As expected, the commodity asset class saw a beating after the statement. However, the market is not convinced at the moment that the peace talks can progress and we saw a bounce from the lows of most of the commodities be it crude, precious metals or base metals. A more worrying development was the 10-year and the 2-year Treasury yield curve inverting for the first time since September 2019. The inversion was brief but enough to see some buying in safe haven asset like gold from the lows. Trend still is sideways to bullish and despite strong rupee, MCX gold has opened gap up. We recommend buy on dips with stoploss of 51000 and expected intraday target of 52000.
Jigar Trivedi, Manager — Non-Agro Fundamental Research, Anand Rathi Shares & Stock Brokers
On Tuesday, spot gold closed lower at $1,918 an ounce, down by $4 or 0.21%, hovering near a one-month low hit in the previous session, as Russia-Ukraine peace talks pointing towards progress dimmed bullion’s safe-haven demand, though a weaker dollar and a drop in yields limited losses. It was the fourth consecutive session of Gold extended losses initially before paring some of the decline as Russia-Ukraine peace talks ended with no next step, supporting demand for the haven asset. The first round of face-to-face talks between Russia and Ukraine in more than three weeks failed to reach agreement on a cease-fire, but offered a potential pathway to a meeting between Putin and Zelenskiy to resolve the situation. MCX Gold June future may advance to Rs. 51,500 per 10 gram.
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