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Gold prices dipped slightly in India on Wednesday amid profit booking and a firmer US dollar, even as safe-haven demand and geopolitical tension supported underlying sentiment. On the Multi Commodity Exchange (MCX), February gold futures are trading at Rs. 1,38,271 per 10 grams, down 0.58%. March silver futures also backed, trading at Rs. 2,55,037 per kilogram, down 1.46% at the press time.
Gold prices increased in Mumbai. 24K gold rose to Rs. 13,948 from yesterday’s Rs. 13,882 per gram. The cost for 10 grams of 24K gold has also increased to Rs. 1,39,480 from Rs. 1,38,620.
Similarly, 22K gold prices have also increased to Rs. 12,785 per gram from Rs. 12,725; the cost for 10 grams of 22K gold has jumped to Rs. 1,27,850 from Rs. 1,27,250.
As in Mumbai, gold prices in Chennai also increased. 24K gold price per gram trades at Rs. 14,040 from the previous price of Rs. 13,997. The rate for 10 grams of 24K gold rose to Rs. 1,40,400 from Rs. 1,39,970.
The US-Venezuela conflict has raised geopolitical uncertainty, supporting gold prices. Investors are booking some profits in the yellow metal after the steep rise last year.
Expectations of US interest rate cuts continue to provide a safety for gold.
Meanwhile, according to Reuters, the US and Venezuela have reached a deal to export Venezuelan crude worth up to $2 billion to the US.
Jigar Trivedi, Senior Research Analyst at Reliance Securities, said that geopolitical risks continue to be a key factor for gold prices.
"Trump has said Washington could oversee Venezuela’s government. He had threatened further military action if the interim leadership did not cooperate. Moreover, the White House also said Trump has not ruled out possible military action regarding Greenland," Trivedi said.
Support zones are seen at Rs. 1,38,500 and Rs. 1,37,700 for gold, with key resistance near Rs. 1,40,400-Rs. 1,41,000 on MCX.
For silver, support levels are at Rs. 2,49,170, with upside potential toward Rs. 2,68,000-Rs. 2,75,000 should buying interest re-emerge.
