Gold Prices Ease Amid Geopolitical Unrest: Is This a Dip Worth Buying?
Gold prices have taken a slight downturn, dropping by Rs 300, as profit booking kicks in, yet silver remains above Rs 2.69 lakh, buoyed by persistent geopolitical tensions and heightened demand for safe-haven assets. With current market dynamics, the question arises: Is this dip in gold prices worth considering for your investment portfolio?
Current Market Overview
– Gold February futures opened lower at Rs 1,41,731 per 10 grams, a decline of Rs 301 or 0.21%, following an impressive surge to historical highs just a day earlier.
– In contrast, silver March futures see a modest rise of Rs 399 or 0.15%, trading at Rs 2,69,369 per kilogram.
This fluctuation comes in the wake of gold hitting an all-time peak, above $4,600 per ounce, recently spurred by escalating geopolitical risks. Investors capitalized on these high prices, resulting in the current easing.
Geopolitical Influence on Precious Metals
The decrease in gold prices follows significant geopolitical developments:
– U.S. President Donald Trump’s announcement of a 25% tariff on nations trading with Iran has intensified market unpredictability.
– This added pressure follows the unrest in Iran and comprehensive U.S. foreign policy adjustments, including ongoing conflicts in Ukraine and Venezuelan politics.
Market Performance Recap
On the domestic front:
– Gold: February futures settled at Rs 1,42,032 per 10 grams, a notable 2.31% rise.
– Silver: March futures concluded at Rs 2,68,970 per kilogram, reflecting a substantial 6.43% increase.
These trends in precious metals are partially attributed to strong safe-haven buying due to heightened global tensions.
Investment Insights into Gold and Silver
According to Manoj Kumar Jain of Prithvifinmart Commodity Research, the outlook remains optimistic, fueled by:
– Anticipated U.S. Federal Reserve rate cuts, bolstering the attraction of precious metals.
– Portfolio diversification and increased ETF purchases have driven gold and silver to significant highs.
Key Support and Resistance Levels for Trading
For those considering trading in gold and silver, Jain highlights the following:
– Gold:
– Support: Rs 1,40,400 to Rs 1,39,100
– Resistance: Rs 1,43,300 to Rs 1,44,500
– Silver:
– Support: Rs 2,65,500 to Rs 2,61,000
– Resistance: Rs 2,74,000 to Rs 2,80,000
Recommended Trading Strategies
– Gold: Buy on dips around Rs 1,40,400 to Rs 1,39,500 with a stop-loss set at Rs 1,38,200; target prices include Rs 1,42,500, Rs 1,44,000, and Rs 1,45,500.
– Silver: Engage around Rs 2,60,000 to Rs 2,55,000, with a stop-loss under Rs 2,48,000, aiming for targets of Rs 2,70,000, Rs 2,75,000, and Rs 2,80,000.
Current Physical Gold Prices in Major Cities
– Delhi:
– Standard gold (22 carat): Rs 1,07,208 per 8 grams
– Pure gold (24 carat): Rs 1,15,552 per 8 grams
– Mumbai:
– Standard gold (22 carat): Rs 1,06,232 per 8 grams
– Pure gold (24 carat): Rs 1,14,408 per 8 grams
– Chennai:
– Standard gold (22 carat): Rs 1,06,136 per 8 grams
– Pure gold (24 carat): Rs 1,14,312 per 8 grams
– Hyderabad:
– Standard gold (22 carat): Rs 1,05,832 per 8 grams
– Pure gold (24 carat): Rs 1,14,080 per 8 grams
Conclusion: Buying the Dip?
As gold prices ease, potential buyers may find this dip an opportune moment to invest, especially given ongoing geopolitical uncertainties that traditionally boost demand for gold as a safe haven. With expert predictions and market analyses, investors might consider this as a strategic entry point in the precious metals market.