Russia has increased its military capabilities along its border with Ukraine and in Belarus, according to the Pentagon. Ukraine believes there is still a chance to resolve the West’s standoff with Russia through diplomacy.
Gold futures on MCX were slightly lower by 0.01% or Rs 5 at Rs 48,655 per 10 grams. Silver futures were trading down 0.09% or 59 rupees to 62,629 rupees per kg.
Gold is seen as a hedge against inflation and geopolitical risks, but rate hikes would increase the opportunity cost of holding non-performing bullion.
Ravindra Rao, CMT, EPAT, VP-Head Commodity Research, Kotak Securities said the pullback in US and global bond yields from recent highs, geopolitical tensions and inflationary concerns supported prices for the yellow metal.
“ETF investors have also moved to the sidelines after recent inflows. Gold has continued to rise indicating buying interest, but it may stall as today’s US inflation data today could bolster expectations that the Fed may act soon,” he added.
In the spot market, the highest purity gold was sold at Rs 48,665 per 10 grams while silver was priced at Rs 62,387 per kg on Wednesday, according to the Indian Bullion and Jewelers Association.
Spot gold prices jumped by around 850 rupees per 10 grams in less than 10 sessions, while silver rose by more than 1650 rupees per kg in the last week.
“Gold prices may continue to run a bullish course during some trading sessions. US inflation data due today will be key to gold’s next move, likely higher,” said Ravi Singh, Vice President and Head of Research, ShareIndia. .
“We expect gold prices to rise sideways for the day with COMEX Spot Gold support at $1,820 and resistance at $1,850 an ounce. MCX Gold Futures Support April stands at Rs 48,300 and resistance at Rs 49,000 per 10 grams,” Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Spot gold was flat at $1,833.26 an ounce at 01:13 GMT, closing in on Wednesday’s high of $1,835.60. US gold futures fell 0.1% to $1,834.30.
Silver fell 0.3% to $23.23 an ounce, platinum also fell 0.3% to $1,030.92, while palladium was flat at $2,279.51.