Gold & Silver Outlook - March 28, 2022 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

International spot and COMEX gold and silver prices ended flat on Friday as U.S. Treasury yields reached new highs.

However, for the week both gold and silver prices were stronger as concerns over the war in Ukraine and rising prices boosted its appeal as a safe-haven and an inflation hedge.

Domestic gold, silver and the bullion Index futures ended weaker on Friday, tracking overseas prices.

Helped by expectations of monetary tightening by the U.S. Federal Reserve, yields on the U.S. 10-year Treasury note firmed near multi-year highs.

According to the CME FedWatch tool, traders and investors are pricing in a probability of a 50-basis points rate hike during the Fed policy meeting in May.

On the other hand, overall tone of the market is still supportive of precious metals.

Markets are still witnessing traders and investors wanting to diversify their portfolio.

SPDR Gold Trust ETF fund said its holdings rose 0.5% to 1,093.18 tonnes on Friday from 1,087.66 tonnes on Thursday.

International gold spot and COMEX futures have started weaker this Monday morning in Asian trade tracking the strength of the bond yields and stronger dollar.

However, the ongoing war between Ukraine and Russia, will keep downside capped.

Technically, if LBMA spot Gold trades above $1950.00 level it could continue its bullish momentum up to the resistance zone at $1963-$1972. A trade below could pull prices to the support zone at $1930-$1920.

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

Technically, if MCX Gold April trades above 51800 it could continue its bullish momentum up to the resistance zone at 51950-52100. A trade below could pull prices to the support zone at 51650-51600.

International silver spot and COMEX futures have started weaker this early Monday morning in Asian trade as the U.S. Dollar strengthened this morning.

Technically, if LBMA spot Silver trades above $25.00 level it could continue its bullish momentum up to the resistance zone at $25.54-$26.10. A trade below could pull prices to the support zone at $24.80-$24.55.

Domestic silver prices could start weaker this early Monday morning, tracking a weak start in the overseas prices.

Technically, if MCX Silver May trades above 68000 it could continue its bullish momentum up to the resistance zone at 68650-69000. A trade below could pull prices to the support zone at 67800-67300.