A safe-haven-fueled rise that had propelled gold prices to their highest level since early February was reversed on Thursday in the global markets. Once Credit Suisse became the latest target for concerns about a banking crisis, traders sought more clarity on the financial industry. Spot gold was down 0.3% at $1,912.48 per ounce after increasing by more than 1% on Wednesday. U.S. gold futures fell 0.8% to $1,915.10.
Following a recent downturn, gold prices increased as investors redirected their focus back to gold as a safe haven asset in response to a new banking sector crisis. With this upward movement, the bullion has reached its highest point since early February. Gold prices in pounds reached a new high, and bullion in euros also increased to levels not seen since records were set last year. We anticipate gold to trade lower towards Rs 57680 levels; a breach of these levels could cause the price to drop as low as Rs 57210 levels.
Saumil Gandhi, Senior Analyst (Commodities), HDFC Securities said, On Thursday, gold prices decreased. Comex spot gold prices were down 0.29% at $1,913 per ounce in morning trade. On Wednesday, Comex Gold prices soared to a new swing high of $1,937 per ounce as investors flocked to the safe-haven commodity in response to problems at Swiss lender Credit Suisse. Bond yields in the U.S. and the eurozone decreased after the news due to a new round of upheaval in banking equities and altering interest rate expectations.
The downside looks restricted to the $1,880 level per ounce for the day, and we anticipate selling pressure to be around the $1,935 per ounce level as gold prices move volatilely with a bearish bias. Supports for Comex spot gold for the day are at $1,895-1,880 per ounce and resistance is at $1,924-1,940 per ounce. Support and resistance for the MCX Gold April future are respectively set at Rs 57,140 and Rs 58,400 per 10 grams.