Mumbai, March 7 (IANS). Due to rising geopolitical tensions in the Middle East, investors turned to buying precious metals (gold and silver) as a safe-haven, which also led to a rise in gold and silver prices this week, as well as increased volatility in the broader commodity market.
Although a slight decline and profit-booking was seen in prices at some times during the day, overall the trend of gold and silver prices still remains strong and bullish.
On MCX, gold futures for delivery on April 2 continued to rise and prices crossed the resistance level of Rs 1,65,000 and reached Rs 1,69,880. However, at the end of trading on Friday, gold remained almost stable and closed at Rs 1,61,675, which was slightly lower than the previous closing level.
At the same time, the bullish trend continued in silver futures for delivery on May 5 on MCX. The price of silver crossed the level of Rs 2,85,000 and reached close to Rs 3,00,000. A lot of ups and downs were seen in the market during this period.
According to Ponmudi R, CEO of Enrich Money, both gold and silver witnessed a slight decline after reaching near record levels, while the fear of supply disruption led to a sharp rise in the prices of crude oil.
He said trader participation has increased around key breakout levels, but given the high volatility in the market, it is important to focus on risk management.
According to experts, technical indicators show that there is an upward trend in gold prices. If the support level remains strong then gold can reach Rs 1,70,000.
However, if the price goes below Rs 1,57,000, the decline may extend to Rs 1,50,000.
Experts say that the range of Rs 2,55,000 to Rs 2,65,000 has become a strong demand zone for silver. If the uptrend continues then the price can go towards Rs 3,00,000 to Rs 3,05,000.
But if the price falls below Rs 2,60,000, the market may see stability or mild decline for some time.
Comex gold futures also remained strong in the international market this week and were seen trading in the range of $5,158 to $5,181, which is higher than the previous closing level of $5,078 to $5,099.
At the same time, a good rise was also seen in Comex Silver Futures and it closed at around $84.31. During trading its highest level was $85.34 and lowest level was $81.79.
–IANS
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