Kamal Ghorui
Gold price prediction today: Gold prices may face resistance at Rs 1,63,275, says Maneesh Sharma, AVP – Commodities & Currencies, Anand Rathi Shares and Stock Brokers.Gold opened up at the start of the week, a widely expected move, as investors sought safe haven, following the continued US and Israel attacks on Iran. However sustained strength in safe haven currencies such as the dollar witnessed profit booking moves in gold. Despite the same, gold held broadly positive above $ 5000/Oz during the week. Gold also recorded its seventh straight monthly gain in February, the longest streak since 1973, driven by heightened geopolitical tensions and US President Trump’s reshaping of international relations. The rally was also supported by central bank purchases and a broader investor move away from sovereign bonds and currencies. Central banks continued their purchases from the previous year as Bank Negara Malaysia (3t) made its first net purchase of gold since 2018 while the Bank of Korea looks to resume gold investments for the first time since 2013. Geopolitical uncertainty remains a persistent backdrop to central bank demand as the broadening of the demand base remained an emerging theme this year. Other emerging markets such as the Central Bank of Uzbekistan bought 9t in the current month, continuing its buying streak since October.
Gold Price Outlook
Gold bias expected to remain positive this week amid expectations of prolonged US-Iran conflictWeekly View:
- Spot Gold (CMP $ 5165/Oz) –Positive bias with support at $5,070–5,050/Oz levels.
- Spot Silver (CMP $ 84.50/Oz)–Volatile to Positive bias with higher side target at 92 – 93/Oz.
A risk-off wave is expected to keep bias positive for gold in global markets as new week kicks off, with flight to safety seen for precious metals, while Oil prices are also seen storming through the roof. Safe-haven currencies such as the US Dollar (USD), Japanese Yen (JPY) and the Swiss Franc (CHF) will be the most sought after in such times as seen during the week while global equity markets could come under selling pressure if the conflict gets prolonged. The trajectory of bullion prices could depend on the duration & intensity of the conflict as global investors reassess risk exposure. Meanwhile diplomatic developments over Iran could be closely scrutinized during the week amid any indications of de-escalation could also lead to profit booking moves later in the week.Gold upside resistance at around $5360 – 5370/oz in Spot still persists on a weekly closing basis. With a sustainable close above the same, gold could remain open for further upside momentum up to $5500 – 5600 levels. Meanwhile Silver being a less liquid market as compared to gold could remain volatile amid a broad trading range of $ 76 – 89 to persist for the current week. On MCX April futures contract (CMP Rs 1,63,275/10 gm), immediate resistance is seen around 1,65,000 – 1,65,700/10 gm, as a decisive weekly close above this zone can open targets towards Rs 1,72,000 plus in the upcoming week.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)
