Gold & Silver Outlook - March 22, 2022 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

International spot gold and silver rebounded on Monday as fighting in Ukraine boosted demand for safe-haven bullion, while investors kept a close tab on Moscow-Kyiv peace talks.

Domestic gold, silver and the bullion Index futures also rebounded on Monday, tracking overseas prices.

Another escalation around Ukraine and inflation hedge trades can be expected if the markets witnessed another round of sanctions that could trigger another commodity surge and will drive significant safe haven flows to gold.

However, further upside was capped after Atlanta Federal Reserve Bank President Raphael Bostic said that he was open to a more aggressive policy tightening.

Additionally, Fed Chair Powell said the central bank must move quickly to bring too-high inflation under control, and will, if needed, use bigger-than-usual interest rate hikes to do so.

According to CME FedWatch tool, the market implies a 50-50 chance of a half point hike in May and an even greater chance by June.

The U.S. Dollar rose against its rivals, while the Bond yields spike and kept upside capped on Monday.

International gold spot and COMEX futures have started flat this Tuesday morning in Asian trade.

Technically, if LBMA Gold trades below $1930 it could witness a downside pressure up to $1914-$1905 levels. Resistance is at $1932-$1944 levels.

Domestic gold prices could start flat this early Tuesday morning, tracking a subdued start in the overseas prices.

Technically, if MCX Gold April trades below 51700 level it could witness a bearish momentum up to 51400-51100 levels. Resistance is at 51770-51900 levels.

International silver spot and COMEX futures have started flat this early Tuesday morning in Asian trade.

Technically, if LBMA Silver trades below $25.00 it could witness sideways to marginal downside momentum up to $24.44-$24.00 levels. Resistance at $25.33-$25.88 levels.

Domestic silver prices could start flat this early Tuesday morning, tracking a subdued start in the overseas prices.

Technically, if MCX Silver May trades below 68500 level it could witness a bearish momentum up to 67550-67200 levels. Resistance is at 68900-69400 levels.