Gold price today: Gold rate jumped by 1% on the MCX on Wednesday, February 18, due to short covering after a two-day fall. MCX gold April futures jumped by nearly ₹2,000, or 1.2%, to ₹1,53,303 per 10 grams, while MCX silver March futures jumped by over ₹4,100, or nearly 2%, to ₹2,32,930 per kg.
International gold prices also climbed on buying on dips. However, an uptick in the US dollar and progress in US-Iran talks capped gains. Thin trading on account of the Lunar New Year holidays in Chinese, Korean and several other Asian markets also limited gains.
The dollar index climbed by 0.10% to 97.25. A stronger greenback tends to weigh on gold prices as it makes greenback-backed yellow metal expensive for overseas buyers.
Meanwhile, on the geopolitical front, Iran and the United States reached an understanding on the main “guiding principles” in a second round of nuclear talks in Geneva on Tuesday, but work still needs to be done, Iranian Foreign Minister Abbas Araqchi said, as reported by Reuters.
Meanwhile, Iranian Foreign Minister Abbas Araqchi said on Tuesday that the United States should immediately desist from threatening the use of force against Iran, according to Reuters.
Geopolitical uncertainties are among the major drivers of gold prices. Silver prices are rising amid a demand-supply mismatch. However, investors have been booking profits of late amid steep gains over the last year.
“We are experiencing very high price volatility in both precious metals. Silver prices could hold their support level of $63.90 per troy ounce, and gold prices could also hold their support level of $4,770 per troy ounce on a closing basis this week. We expect gold and silver prices to remain volatile this week amid volatility in the dollar index, US-Iran talks, ahead of the key U.S. economic data and geopolitical tensions,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.
Gold and silver: Key levels to watch
According to Jain, gold has support at $4,880 and $4,824, while resistance is at $4,955 and $5,000 per troy ounce, and silver has support at $71.20 and $68.80, while resistance is at $76 and $78.40 per troy ounce in today’s session.
On the MCX, gold has support at ₹1,49,800 and ₹1,47,700 and resistance is at ₹1,53,150 and ₹1,55,500, while silver has support at ₹2,24,400 and ₹2,18,800, and resistance is at ₹2,32,200 and ₹2,36,000, said Jain.
Jain suggests avoiding any positions in both precious metals for this week due to the holiday in Chinese markets and the US-Iran talks.
(This is a developing story. Please check back for fresh updates.)
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
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