Despite conflicting global cues, the gold rate is up today while the silver rate is up 1.21%. Gold April futures were up Rs 465 or 0.83% on the Multi Commodities Exchange, trading at Rs 56,615 per 10 kilos. On the MCX, silver May futures were trading at Rs 63,650 per kilogram, up Rs 760. After reaching its highest level since 3 February earlier in the session at $1,893.96 per ounce, spot gold was up 0.5% at $1,877.30. U.S. gold futures increased by 0.8% to $1,882.10. The Silicon Valley Bank (SVB) implosion and significant selling in the dollar index may have caused the gold and silver market to achieve an unexpected weekly gain last week.
Prices for gold and silver surpassed their key resistance and rose to a level not seen in a month. The U.S. non-farm employment shows an increase of 3,11,000 jobs in February versus the predicted growth of 2,24,000 jobs, but it is significantly below the 5,17,000 jobs added in January. In February, the U.S. unemployment rate increased to 3.6%, exceeding predictions of 3.4%. In support of increased gold prices, the U.S. dollar index dropped and the two-year yield experienced its worst two-day slide since 2008. The SVB bank scandal, which might keep precious metals volatile, prompted the U.S. Fed to schedule an emergency meeting on Monday.
We anticipate that the price of gold and silver will remain erratic today. Support and resistance levels for gold are $1851 and 1440, respectively. Support for silver lies between $20.44 and $20.25, while resistance is between $20.82 and $20.98. Support and resistance for gold in Indian rupees are respectively at Rs 56,020-55,710 and Rs 56,510-56,780. According to Rahul Kalantri, VP of Commodities at Mehta Equities, silver has support between Rs 62,420 and Rs 62,010 and resistance between Rs 63,490-63,980.
“Amid strong U.S. economic data, a declining dollar, and fears over the biggest U.S. bank failure since the 2008 financial crisis, investors flocked to the safe-haven commodity, propelling gold prices up to their highest levels in more than five weeks. The Federal Deposit Insurance Corporation (FDIC) has been named receiver for later asset disposition after Silicon Valley Bank was shuttered by California banking regulators on Friday. The New York-based Signature Bank was shut down on Sunday by state regulators as well. U.S. officials have intervened to stop the financial repercussions of Silicon Valley Bank, a bank that specialized in serving tech startups, and announced that all customers will have access to their deposits starting on Monday.
