Gold & Silver Outlook - March 23, 2022 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

International spot and COMEX gold and silver prices fell to a near 1 week low on Tuesday after U.S. Federal Reserve Chair Jerome Powell hinted at big rate hikes this year to fight against soaring inflation, sending Treasury yields higher.

Domestic gold, silver and the bullion Index futures also fell on Tuesday, tracking overseas prices and a stronger Rupee.

However further downside was capped on the Russia-Ukraine situation.

Rising gold exchange-traded fund holdings show that despite day-to-day price fluctuations, asset managers are moving back into gold to diversify and as a hedge against inflation and an economic downturn.

Holdings of SPDR Gold Trust rose about 0.1%, while holdings of iShares Silver Trust were unchanged on Monday from Friday.

International gold spot and COMEX futures have started weaker this Wednesday morning in Asian trade as a hawkish Federal Reserve continues to push U.S. bond yields higher.

The Dollar and the benchmark 10-year bond yields eased this Thursday morning in Asian trade and lent support.

Technically, if COMEX Gold April trades below $1923.60 level it could continue its bearish momentum up to the support zone at $1907.70-$1893.90. A trade above could push prices to the resistance zone at $1937.40-$1953.30.

Domestic gold prices could start weaker this early Wednesday morning, tracking a negative start in the overseas prices.

Technically, if MCX Gold April trades below 51495 it could continue its bearish momentum up to the support zone at 51035-50695. A trade above could push prices to the resistance zone at 51835-52290.

International silver spot and COMEX futures have started with marginal gains this early Wednesday morning in Asian trade.

However, a stronger dollar, strengthening bond yields and weak gold prices will keep upside capped.

Technically, if COMEX Silver May trades below $25.063 level it could continue its bearish momentum up to the support zone at $24.535-$24.170. A trade above could push prices to the resistance zone at $25.430-$25.960.

Domestic silver prices could start with marginal gains this early Wednesday morning, tracking a positive start in the overseas prices.

Technically, if MCX Silver May trades below 67975 it could continue its bearish momentum up to the support zone at 66865-66035. A trade above could push prices to the resistance zone at 68805-69915.