Gold as a safe-haven investment option didn't help lift its prices on Wednesday despite the ongoing Russia-Ukraine war as investors were booking profit.
MCX gold April contract was trading at Rs 51,749, down 0.13 percent from the previous day's close, at 10:22 am. Anuj Gupta, VP-Research at IIFL Securities, said today's slight fall in the yellow metal was due to profit booking. Geopolitical tension, high crude prices, fear of inflation remain supportive for gold, he said.
Demand for Gold ETF also increased. "It is increased by 46.3 tonnes or worth of $2.7 billion in January 2022. Selloff in equity and depreciation in currency turned the investors towards yellow metal as safe-haven asset," Gupta added.
"We are recommending buy in Gold at Rs 51,500 to Rs 51,600 levels with the stoploss of Rs 50,900 for the target of Rs 52,400 levels. They can also buy in silver at Rs 67,700-Rs67,800 levels with the stoploss of Rs 67,000 for the target of Rs 69500 - Rs 70000 levels."
Gold in the international market (COMEX) was also trading lower at $1,940 on Wednesday.
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MCX Silver April contract also fell to Rs 67,800 on Wednesday. Gold may test $1,965 to $1,980 levels and silver may test $27 to $30 soon, he added.
"Buy Zone Near - Rs 51650 for the target of Rs 51,900...Sell Zone Below - Rs 51,500 for the target of Rs 51,300," said Ravi Singh, vice-president and head of research at Share India.
On Tuesday, MCX gold prices increased by 2.08 percent to Rs 51,816 levels. In international market, it touched the high of $1,950 levels per ounce.
Silver also increased by 3.46 percent at Rs 6,8179 levels on Tuesday. In the international market, it was trading at $25.10 per ounce.
The Russian invasion of Ukraine lifted gold prices over the past week, as investors had rushed for the safe-haven investments.
Meanwhile, bitcoin prices gained despite the geopolitical tensions in Eastern Europe, as people in Russia and Ukraine were looking to store and move money in anonymous and decentralised crypto.
(Edited by : Bivekananda Biswas)
First Published: Mar 2, 2022 11:06 AM IST
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