Mumbai, March 4 (IANS). Amid the fall in the stock market due to the ongoing Iran-Israel-America conflict in West Asia, investors are turning to safe options like gold and silver. This is the reason that in the early trading session on Wednesday, gold prices on Multi Commodity Exchange (MCX) saw a rise of more than 1 percent, while silver saw a rise of more than 2 percent.
Gold futures for April delivery on MCX rose by 1.44 percent or Rs 2,324 to reach Rs 1,63,432 per 10 grams. At the same time, silver futures for May delivery rose by 2.65 percent i.e. Rs 7,021 to Rs 2,72,339 per kg.
However, there was a huge fall in gold and silver in the previous session. April gold futures fell 3 per cent to Rs 1,61,108 per 10 grams, while May silver futures fell nearly 5 per cent to Rs 2,65,318 per kg. The reason for this was the strength in the dollar index and the rise in the American 10-year bond yield.
The dollar index rose to a multi-month high of 99.33, while the US 10-year bond yield crossed 4 percent. Investors are worried that a sharp rise in energy prices could lead to inflation, forcing the US Federal Reserve to keep or raise interest rates.
The conflict between America and Iran in West Asia shows no signs of abating. The series of missile attacks continues after the assassination of Iran’s supreme leader Ayatollah Ali Khamenei. Israel claimed new attacks in Tehran and Beirut on Tuesday. Meanwhile, US President Donald Trump said that the war could last for four to five weeks, but if needed, it could continue for longer.
Experts believe that the long-term trend of precious metals remains strong, but for now it would be better to wait for stability in the market.
An expert said that one should avoid taking new positions in gold and silver in today’s session and wait for some stability in the market.
According to experts, on MCX gold has support at Rs 1,59,100-1,57,700 and resistance at Rs 1,63,500-1,65,800. Whereas for silver, support level of Rs 2,57,700-2,51,500 and resistance level of Rs 2,71,000-2,78,800 has been given.
–IANS
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