Gold Price Today, 16 Feb’22: Gold below Rs 50k after hitting 1-yr high in last session, Ukraine tensions ease

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices fell in India on Wednesday after hitting 1-year high in the previous session. On Multi Commodity Exchange, gold April futures were trading Rs 27 down at Rs 49,358 per 10 gram, as against the previous close of Rs 49,385. Silver March futures were ruling at Rs 63,019 per kg, marginally up by Rs 30. Globally, yellow metal prices slipped, pulling further away from an eight-month peak scaled in the previous session, as signs of a slight de-escalation in the Russia-Ukraine standoff diminished the appeal of safe havens, according to Reuters. Spot gold was down 0.1 per cent at $1,850.91 while, U.S. gold futures dropped 0.2 per cent to $1,852.40.

Bhavik Patel, Commodity & Currency analyst, Tradebulls Securities

Gold gave up all its gains it accumulated in the last two-three trading sessions because of potential de-escalation. It was the escalation between those two countries that prompted Gold to surge above its previous resistance of $1850. Gold is back to its previous resistance of $1850 after traveling till $1880. We believe this is a good level as some of the froth build up in the last couple of trading sessions has been taken out and fundamentals still point to strong gold prices on account of higher inflationary numbers. 48500 continues to be strong support and investors should be looking at a buy on dips strategy. Further clarity on rate hike will come on Thursday when FOMC minutes will be published.

Navneet Damani, Sr. Vice President – Commodity & Currency Research, Motilal Oswal Financial Services

Gold prices slipped from an eight month peak, after gaining by almost $100 since the start of this month, as signs of a slight de-escalation in Russia-Ukraine standoff diminished the appeal of safe havens and increased market participants interest in the riskier assets. Some reports from Moscow and Ukraine officials suggesting that Russia had pulled off some troops off the border. Russia’s president said he was prepared to hold negotiations on intermediate nuclear missile forces and confidence-building measures with the U.S. if the NATO pledged to discuss Moscow’s grievances. President Putin also mentioned these troops actions as a drill and although updates regarding the same will still be in focus. Positive U.S. PPI an earlier indicator of the Inflation supported gold on lower levels as producers were paid more for their output in a trend that looked set to exacerbate inflation already expanding at its fastest pace in 40 years. Broader trend on COMEX could be in the range of $1830-1875 and on domestic front prices could hover in the range of Rs 49,000- 49,600.

Jigar Trivedi, Manager — Non-Agro Fundamental Research, Anand Rathi Shares & Stock Brokers

Spot gold may fall owing to the de-escalation of a geo-political risk between Russia and the Ukraine, which actually, the US is yet to confirm. Meanwhile, the US will release retail sales and industrial production for January later in the session hence we don’t deny rising volatility in the second half. Moreover, British inflation is on track to peak at a 30-year high of over 7% in April, but differences in forecasts for energy prices and wages mean private-sector economists and the Bank of England are split over what happens next. MCX Gold April may fall to Rs. 49,200 per 10 gram.

Tapan Patel, Senior Analyst — Commodities, HDFC Securities

Gold prices traded lower on Wednesday with spot gold prices at COMEX were trading more than 1% down near $1851 per ounce. MCX Gold April futures opened down near Rs. 49350 per 10 gram in line with weak COMEX prices. The yellow metal declined to ease Russia-Ukraine tension after Russia pulled back some of the troops to the base. Gold prices fell from three months highs on risk on sentiments after Russia hinted to open a deplomatic window over Ukraine issue. The higher inflation worries may cap downside in gold. We expect gold prices to trade down for the day with COMEX Spot gold support at $1830 per ounce and resistance at $1870 per ounce. MCX Gold April futures support lies at Rs. 49000 and resistance at Rs. 49700 per 10 gram.

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