Gold prices near 13-month high as Ukraine crisis deepens; at what levels should you buy?

According to Anuj Gupta, VP-Research at IIFL Securities, geopolitical tension coupled with higher crude oil prices boosted the safe-haven demand of the yellow metal.

"Technically, we are expecting gold may test $1,925 and $1,950 levels very soon. Above $1,950 it may test $1,980 -$2,000 levels. In the domestic market, if gold is able to sustain above Rs 50,700 level then it may lead to a rally towards Rs 51,500 to Rs 52,300 and then Rs 53,000 levels," Gupta said.

"Intraday traders can buy gold around Rs 50,200-Rs 50,300 levels with the stop-loss of Rs 49,900 for the target of Rs 51,000 levels."

"Buy Gold Apr at Rs 50,000 SL 49750 TARGET Rs 50,900. BUY silver March at Rs 63,300, SL RS 62650 TARGET Rs 65,000," Gupta added.

"If we talk about the Russia and Ukraine crisis then we think at current scenario none of the countries are ready for war due to corona pandemic, and oil reserves Russia hold," Amit Khare, AVP-Commodities Research, Ganganagar Commodity.

"Russia has a crude stock capacity of 80 billion barrels, and the economic condition of Russia is also bad. Russia has a claim on three US banks, US banned the banks, and Russia cannot withdraw money from these banks. If war happens then Russia's gas pipeline oil and reserves will be destroyed badly and then Russia will be ruined. So, there will be very less chances of any war."

Khare said Rs50,500-Rs51,000 are the best prices for gold investors/buyers to book profit on their longs and they can also create fresh short positions for 3 percent to 5 percent corrections.

For silver, Rs64,500-Rs65,000 are the best booking price for investors/buyers to book their longs, he said.

"If we talk about fresh investment opportunities, then RS 48,000 for gold and Rs 62,500-Rs 62,000 for silver are the best prices for fresh buys."

Meanwhile, on Monday, Russian President Vladimir Putin recognised two breakaway regions in eastern Ukraine as independent and ordered its army to launch what Moscow called a peacekeeping operation into the area, accelerating a crisis the West fears could unleash a major war. Oil prices jumped to a seven-year high, safe-havens rallied, while US stock futures fell.

US President Joe Biden signed an executive order to prohibit trade and investment between US individuals and the two breakaway regions of eastern Ukraine, the White House said.

India calls for restraint at UNSC meeting, UN Representative Tirumurti says safety of Indian students in Ukraine priority

US benchmark 10-year yields tumbled on the back of the Ukraine crisis and US Federal Reserve rate hike bets, moving away from a more than two-year peak hit last week.

Also Read: Oil prices jump 7-year high, stocks slide as Russia orders troops to Ukraine regions

Earlier this month, Fed officials agreed that with inflation tightening its grip on the economy and employment strong, it was time to raise interest rates, but also that any decisions would depend on a meeting-by-meeting analysis of inflation and other data.

Also Read: Putin recognises Ukraine separatist regions, sends troops on what Russia calls peacekeeping mission

While bullion is considered a hedge against inflation and geopolitical risks, interest rate hikes would raise the opportunity cost of holding non-yielding bullion. Spot silver was up 0.4 percent at $24.03 per ounce, platinum rose 0.5 percent to $1,080.03 and palladium gained 0.5 percent to $2,399.41.