Gold prices fell on March 9 in the international markets weighed down by a stronger dollar and rising US Treasury yields, while palladium gained on supply worries as western countries ramped up sanctions against Russia over its invasion of Ukraine.
At 9.43 am, gold contracts jumped 1.37 percent at Rs 54,965 for 10 grams on the Multi-Commodity Exchange (MCX) and silver spiked 2.21 percent at Rs 72,960 a kilogram.
Gold and silver rallied on Tuesday after the US banned Russian oil and gas imports. However, gold and silver were off the day’s highs after a statement from President Volodymyr Zelenski that Ukraine was no longer seeking to be a member of NATO.
Global equity markets rallied and profit-taking was seen in both precious metals from higher levels. Gold prices hit $2078.80 per troy ounce and silver reached $27.495 per troy ounce before it cooled off, said Rahul Kalantri, VP – Commodities, Mehta Equities.
We expect both the precious metals to remain volatile in today’s session but hold their support levels. Gold has support at $2,024-1,995, while resistance is at $2,064-2,082 per troy ounce. Silver has support at $26.40-26.00, while resistance is at $27.14-27.55 per troy ounce. In rupee terms, gold has support at Rs 53,154–52,450, while resistance is at Rs 55,440–56,240. Silver has support at Rs 69,650- 68,420, while resistance is at Rs 73,000–74,180, he added.
The war has increased the safe-haven demand for gold, while investors have become more risk-averse and have continued selling equities. Gold prices are making new highs day by day and the inflation fears have added more fuel to its rally.
Buy zone near Rs 54,000 for target of Rs 54,500
Sell zone below Rs 53,800 for target of Rs 53,500