Gold & Silver Outlook - March 25, 2022 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

International spot and COMEX gold rose to a more than one-week high on Thursday as concerns over soaring prices and uncertainty surrounding the war in Ukraine lifted bullion's appeal as a safe-haven and an inflation hedge.

International spot and COMEX silver also ended with gains on Thursday.

Domestic gold, silver and the bullion Index futures also rose on Thursday, tracking overseas prices.

Apparently, even the idea of a rising interest rate environment squeezing the gold market may not not enough to offset the positive pressures that the markets are witnessing from the inflationary tilt.

Holdings of SPDR Gold Trust rose to its highest level since February 2021 on Wednesday.

Meanwhile, the U.S. Dollar and benchmark bond yields rose on Thursday and capped upside.

International gold spot and COMEX futures have started stronger this Friday morning in Asian trade as the Russia-Ukraine conflict escalated while the spike in oil prices this week increased demand for bullion as a safe-haven asset and an inflation hedge.

Meanwhile, the U.S. Dollar eased this Friday morning in Asian trade and also lent support.

Technically, if COMEX Gold April trades above $1955.00 level it could continue its bullish momentum up to the resistance zone at $1973.80-$1985.40. A trade below could pull prices to the support zone at $1944.00-$1925.80.

Domestic gold prices could start higher this early Friday morning, tracking a positive start in the overseas prices.

Technically, if MCX Gold April trades above 51960 it could continue its bullish momentum up to the resistance zone at 52275-52465. A trade below could pull prices to the support zone at 51765-51455.

International silver spot and COMEX futures have started higher this early Friday morning in Asian trade as the U.S. Dollar eased this Friday morning.

Technically, if COMEX Silver May trades above $25.750 level it could continue its bullish momentum up to the resistance zone at $26.330-$26.740. A trade below could pull prices to the support zone at $25.340-$24.760.

Domestic silver prices could start higher this early Friday morning, tracking a positive start in the overseas prices.

Technically, if MCX Silver May trades above 69060 it could continue its bullish momentum up to the resistance zone at 70010-70705. A trade below could pull prices to the support zone at 68365-67411.