Gold Holds Key Support at Rs 1,58,200 as Traders Bet on Three Fed Rate Cuts Amid Rising Global Tensions

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The Gold rate increased on Friday morning as global tensions stayed high. The latest US-Iran talks ended without a final agreement. This news pushed investors toward gold and silver.

On February 27, the Gold rate on MCX rose in early trade. MCX gold April contracts gained nearly Rs. 500, or 0.30%, and touched Rs. 1,60,177 per 10 grams. In the previous session, gold closed at Rs. 1,59,709 per 10 grams after falling almost 1%.

Silver Sees Sharp Buying Interest


Silver price showed stronger action than gold. MCX silver March contracts climbed over Rs. 7,100, or nearly 3%, to Rs. 2,66,800 per kg. In the earlier session, silver had closed at Rs. 2,59,669 per kg after a drop of more than 3%. The sharp rise shows fresh buying interest.

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The US-Iran talks ended on Thursday without an agreement. Oman helped in the talks. Oman’s Foreign Minister Sayyid Badr Albusaidi said both sides made some progress. He added that technical talks will take place next week in Vienna. Even so, no final deal kept uncertainty alive.

US Secretary of State Marco Rubio called Iran a very serious threat. Such comments increased global tension. During uncertain times, the Gold rate usually gains as investors look for safety.

Dollar Index and US Data Support Gold


The Dollar index also supported gold. The index first rose to 97.82. Later, it slipped to 97.69 from 97.79. A weaker Dollar index makes gold cheaper for other currency holders. This factor helped prices move up.

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US weekly jobless claims increased by 4,000 to 2,12,000 for the week ended February 21. The labour market remains stable. Market participants still expect rate cuts this year. Data from CME FedWatch shows that traders expect three 25-basis-point rate cuts from the Federal Reserve. Hopes of a rate cut generally support gold prices.

Key Levels and Trading Strategy

Manoj Kumar Jain of Prithvifinmart Commodity Research expects both Gold rate and Silver price to remain volatile. He suggests buying gold near Rs. 1,59,100 and Rs. 1,58,000. He keeps a stop loss below Rs. 1,56,500. Targets stand at Rs. 1,60,600 and Rs. 1,61,800. For silver, he suggests buying near Rs. 2,58,000 and Rs. 2,53,000 with a stop loss below Rs. 2,48,800. Targets remain Rs. 2,62,000 and Rs. 2,68,000.

On MCX, gold support stands at Rs. 1,58,200 and Rs. 1,56,500. Resistance levels come at Rs. 1,61,000 and Rs. 1,62,500. Silver price support stands at Rs. 2,55,000 and Rs. 2,48,800. Resistance stands at Rs. 2,64,600 and Rs. 2,71,000.

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The Gold rate now trades at an important level. Global tension, the Dollar index, and rate cut hopes may decide the next move.

Disclaimer: This article shares market information for educational purposes only. Investment decisions require advice from certified financial experts.