Gold, Silver Prices Drop; Ukraine Peace Talks In Focus

Gold Price In India: Gold and silver futures fell on Tuesday with investors' focus on potential Russia-Ukraine peace talks. On the Multi Commodity Exchange (MCX), gold futures, due for an April 5 delivery, were last seen 0.68 per cent down at Rs 51,219, compared to the previous close of Rs 51,571. Silver futures, due for a May 5 delivery, were last seen 0.63 per cent lower at Rs 67,678 against the previous close of Rs 68,105.

Domestic spot gold with a purity of 24 carats opened at Rs 51,509 per 10 grams today, and silver at Rs 67,344 per kilogram - both rates excluding GST (goods and services tax), according to Mumbai-based industry body India Bullion and Jewellers Association (IBJA).

Foreign Exchange Rates:

Gold prices were flat as market participants looked forward to Russia-Ukraine peace talks starting later in the day. Spot gold was unchanged at $1,922.67 per ounce. U.S. gold futures were down 0.9 per cent at $1,922.60.

Analyst View:

Ravi Singh, Vice-President and Head of Research, ShareIndia: "Gold is showing profit-booking on account of gains in the U.S. bond yield and strength in the dollar. However, gains in global energy prices and the downbeat U.S. pending home sales, durable goods and core durable goods orders data released last week supported precious metals. Gold prices may show some more correction this week."

He suggested, "Buy Zone above - Rs 51,700 for the target of Rs 52,000. Sell Zone below - Rs 51,300 for the target of Rs 51,000."

Amit Khare, AVP - Research Commodities, Ganganagar Commodity Ltd: "Market are very volatile nowadays due to the Russia-Ukraine crisis. As per the technical chart, gold and silver are now showing weakness. Momentum indicator RSI also cited the same in hourly as well as the daily chart. So traders are advised to create fresh sell positions near given resistance levels. They should focus important technical levels given for the day: April Gold closing price Rs 51,571, Support 1 - Rs 51,300, Support 2 - Rs 51,000,  Resistance 1 - Rs 51,650, Resistance 2 - Rs 51,800. May Silver closing price Rs 68,105, Support 1 - Rs 67,700, Support 2 - Rs 67,000, Resistance 1 - Rs 68,300, Resistance 2 - Rs 68,800."