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Praveen Singh is associate vice president of fundamental currencies and commodities at Sharekhan by BNP Paribas.
Praveen Singh is associate vice president of fundamental currencies and commodities at Sharekhan by BNP Paribas.
Gold is expected to range trade with a bearish bias with a possible test of $4600 unless the US and Iran make material progress towards resolving the conflict through diplomatic channels.
Silver can test support around $72 should bears take out the key level of $74.50. Upside may be capped at around $79 for a very short term
On April 14, silver prices surged to $80.85 -- the highest since March 13 -- on Iran peace hopes before erasing gains as the US Dollar stabilised
Gold may rise to $5000 in the short term, though a sustainable extension of the ongoing rally, which has been in place from the cycle low of $4099, will call for an increase in the safe haven appeal
The metal may extend its recovery further to $5,000 in short term on ceasefire hopes. However, for a sustainable rally, it needs to reestablish its safe haven credentials.
Silver recovery is being driven by ceasefire optimism that is keeping the oil prices capped. Safe-haven flows seem to be largely absent
Safe haven demand for gold during escalating geopolitical tensions due to the raging Iran war has not been strong enough to overcome the dollar strength and rate pressure
Silver, like gold, remains under acute downside pressure as hardening yields and fading rate-cut expectations reflect central banks' heightened vigilance against the spectre of inflation.
Gold price outlook: Gold is caught between safe haven demand support and selling coming on a firmer US Dollar
Dips towards the key support at $84 are likely to be well supported as geopolitical concerns continue to linger, said Praveen Singh, head currencies and commodities at Mirae Asset
In the current scenario, gold may continue to range trade with traders seeking more geopolitical clues before committing themselves, said Praveen Singh, head currencies and commodities at Mirae Asset
China, being on holiday until February 23, has weakened the buying support in silver. However, geopolitical concerns continue to support.
Gold outlook: Spot gold continues to trade in its short-term range of $4,700-$5,100; however, moves have become quite volatile and choppy
Spot gold slumped to $5,104 before finding a bid. US equities slumping on tech spending and RoI concerns also weighed on the precious metals
Spot silver is expected to test psychological resistance at $100 amid lingering geopolitical uncertainty and worries. Risk will come from easing geopolitical concerns
Spot gold will continue to draw support from safe-haven buying amid elevated geopolitical tensions as Greenland uncertainty continues
Roughly $6 billion of silver futures are set to be sold amid index rebalancing. Mirae Asset Sharekhan analyst suggests if Silver prices hold the support of $70, investors may consider buying the dip.
Gold price outlook: Huge volatility and choppiness are expected to continue in gold as traders navigate the maze of data and events in the very short term
Silver needs to hold above $70 to make a fresh attempt at a new high. An increase in margins is serving as a bearish catalyst for the metal
Barring geopolitical shocks, spot gold may trade with a slightly bearish tilt ahead of the US ISM data and Index rebalancing.