The effect of increasing tension between America and Iran is now clearly visible on the prices of gold and silver. On Wednesday (March 4) morning, gold prices once again rose on the Multi Commodity Exchange (MCX). Gold for April delivery jumped by about 1.13 percent to Rs 1,62,930 per 10 grams. Whereas silver for May delivery was seen trading at Rs 2,68,700 per kg with a rise of 1.3 percent.
However, a day ago the picture was completely opposite. In the last trading session, gold had fallen by about 3 percent and closed at Rs 1,61,108 per 10 grams and a sharp fall of about 5 percent was seen in silver. At that time, there was pressure on precious metals due to the strengthening of the dollar and rising US bond yields.
The US dollar index has reached a multi-month high of around 99.33. At the same time, the yield on America’s 10-year bond went above 4 percent. Due to rising energy prices and concerns about rising inflation, investors are believing that the US Fed may keep rates high for a long time instead of cutting them. Amidst this uncertainty, investors are again turning towards safe investments and gold is considered the most preferred option at such times.
What do experts say on gold
Now the question is whether it would be right to buy gold at this time? Commodity experts believe that the trend of gold and silver is positive in the long term, but at present the market is quite volatile. In such a situation, it may be better to wait for some stability instead of making new purchases in haste. Talking about technical levels, gold on MCX is considered to have strong support between Rs 1,59,100 to Rs 1,57,700, while resistance may come at the level of Rs 1,63,500 to Rs 1,65,800. For silver, the support zone is Rs 2,57,700 to Rs 2,51,500 and resistance can be seen between Rs 2,71,000 to Rs 2,78,800. Some analysts believe that in the current environment, gold can go up to Rs 1,63,000 and silver up to Rs 2,70,000 per kg.
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