Gold price in India jumped sharply on Monday amid global tension and surging inflation in the United States. On the Multi-Commodity Exchange (MCX), gold futures were up 0.87 per cent to Rs 49,540 for 10 grams at 0925 hours on February 14. Silver also rose significantly during early trade. The precious metal future jumped 1.26 per cent to Rs 63,782 for a kilogram on Monday.
In the international market, gold price remained steady after surging to nearly a three-month high in the previous session. Spot gold was steady at $1,859.16 per ounce, as of 0125 GMT. US gold futures jumped 0.9 per cent to $1,859.00 per ounce.
“Gold and silver are also witnessing some inflows due to the impact of higher rates on global growth. Fed fund futures are pricing in chance of 50 bps hike at next month’s policy meeting. Prices also got a lift amid weak data. US consumer sentiment fell to its lowest level in more than a decade in early February amid expectations that inflation would continue to increase in the near term. Meanwhile reflecting current bullish sentiments, speculators raised their net long COMEX gold F&O positions by 22,340 contracts to 84,889, while speculators cut their net long COMEX silver F&O positions by 1,434 contracts to 10,139 in the week to February 8, data from CFTC showed,” said Sriram Iyer, senior research analyst at Reliance Securities
“International gold spot and futures started mixed this early Monday morning in Asian trade, but downside could remain capped amid safe haven appeal amid lingering concerns surrounding Ukraine. Technically, if LBMA Gold breakout above $1855 level it could witness a Bullish momentum up to $1863-$1875 levels. Support is at $1843-$1825 levels. Domestic gold prices could start flat to higher this early Monday morning tracking the overseas prices. Technically, if MCX Gold April trades above Rs 49,000 level could witness sideways to marginal upside momentum where resistance is at Rs 49,150-49,280 levels. Support is at Rs 48,900-48.750 levels,” Iyer added.
“International silver spot and futures have higher this early Monday morning in Asian trade, tracking stronger gold. Technically, LBMA Silver could see some sideways to marginal upside momentum above $23.00 level where resistance is at $23.77-$24.40 levels. Support is at $22.90-$22.55 levels. Domestic silver prices could start with gains Monday morning tracking overseas prices. Technically, if MCX Silver March trades above Rs 63,000 level it could witness a Bullish momentum up to Rs 63,700-64,200 levels. Support is at Rs 62,800-62,000 levels,” said Iyer.