Gold price today: Yellow metal tops Rs 51,000 on MCX; silver rallies over Rs 1,200/kg

NEW DELHI: Gold prices spiked more than 1.5 per cent on Monday as the yellow metal was set for best monthly gain in the last three quarters amid rising global worries. Western countries slapped fresh sanctions on Russia for invading Ukraine and President Vladimir Putin put his country’s nuclear deterrent on high alert.

Gold futures on MCX were trading higher by 1.59 per cent or Rs 799 at Rs 51,020 per 10 grams. Silver futures were trading up 1.88 per cent or Rs 1,217 at Rs 66,122 per kg.

Gold prices resumed their rally on Monday as the prices of yellow metal traded higher on inflation worries after Western countries imposed sanctions on Russia and exclusion from the SWIFT transaction system. The escalation in Ukraine crisis may support gold prices in the short term.

Gold is often used as a hedge against inflation and as a means of preserving wealth during times of financial and political uncertainties.

“Any military action by NATO may re-ignite the Russia-Ukraine war. Focus has now again shifted towards inflation, higher crude oil prices, US Fed meeting and expected interest rate hike by various global central banks,” Ravi Singh, Vice President and Head of Research, ShareIndia, said.

In the spot market, highest purity gold was sold at Rs 50,664 per 10 gram while silver was priced at Rs 65,174 per kg on Thursday, according to the Indian Bullion and Jewellers Association.

The spot prices of gold have dropped as much as Rs 550 compared to the last one session, whereas silver has plunged almost Rs 3,000 per kg from Thursday’s rate.

Vidit Garg, Director, MyGoldKart, said gold prices declined on Friday after Biden signaled that armed forces will not be used against Russia, whereas President Putin put his country’s nuclear deterrent on high alert.

Trading strategy
“We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,870 and resistance at $1,970 per ounce. MCX Gold April futures support lies at Rs 49,900 and resistance at Rs 51,200 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.

Global markets
Spot gold rose 1.2 per cent to $1,909.89 per ounce by 0124 GMT. US gold futures climbed 1.1 per cent to $1,908.30. The metal rose as much as 2.2 per cent earlier in the session to hover close to its September 2020 peak.

Palladium jumped 5.9 per cent to $2,506.55 after reaching its highest level since July 2021 at $2,711.18 last week. Spot silver was up 0.4 per cent to $24.28 per ounce, platinum rose 0.7 per cent to $1,061.72.