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Gold prices witnessed a sharp surge on Wednesday, supported by a softer US dollar and renewed safe-haven demand. On the Multi Commodity Exchange (MCX), gold prices for April contracts were up around 4.5% at Rs. 1,60,755 per 10 grams. Silver prices for March contracts also surged, jumping nearly 6% to Rs. 2,84,094 per kg.
The price of 24K gold increased by Rs. 660 in early trade on Tuesday, with ten grams of the precious metal trading at Rs. 1,60,530.
The price of 22K gold also increased by Rs. 605, with ten grams of the yellow metal selling at Rs. 1,47,150.
The price of ten grams of 24K gold stood at Rs. 1,60,530 in Mumbai and Kolkata and Rs. 1,62,560 in Chennai.
In Delhi, the price of ten grams of 24K gold stood at Rs. 1,60,680.
International markets also saw a surge in gold prices; spot gold rose over 2% to trade above $5,040 per ounce, extending gains after its strongest single-day rally since 2008.
US gold futures for April delivery moved higher to around $5,067 per ounce. Silver prices advanced past $86 per ounce.
The dollar index saw a pullback as traders booked profits after recent strength. The weaker dollar enables overseas buyers to purchase dollar-denominated commodities at lower prices, increasing demand.
Ongoing geopolitical tensions, together with fiscal uncertainty, have made gold more attractive as a hedge.
Also Read: Gold, Silver, and Oil Under Pressure: How to Trade the Current Market Spiral
Internationally, gold has support at $4,855 and $4,775, while resistance is at $5,060 and $5,150. Silver has support at $79.80 and $74.75, while resistance is at $89.15 and $94.80.
On MCX, gold has support at Rs. 1,47,650 and Rs. 1,45,310, while resistance is at Rs. 1,52,850 and Rs.1,55,950.
Silver has support at Rs. 2,59,810 and Rs. 2,52,170, while resistance is at Rs. 2,74,810 and Rs.2,80,470.
Manoj Kumar Jain of Prithvifinmart Commodity Research recommends a buy-on-dips strategy.
He suggests accumulating gold on corrections toward Rs. 1,54,000-Rs.1,51,500, with a protective stop below Rs. 1,47,700, while silver may offer opportunities near Rs. 2,70,000-Rs. 2,64,000 for higher targets.
