Gold and silver prices continued their downward journey on Wednesday even as Russia's invasion of Ukraine continued amid hopes of talks.

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MCX gold April contract was down 34 percent at Rs 51,390, while silver was trading 57 percent down at Rs 67,938. Gold prices in India had hit Rs 55,000 mark on March 9 for the first time in over one-and-half-year.

"For today we are expecting a negative trade may emerge. Traders can go for sell in gold around Rs 52,000 to Rs 52,100 levels with the stoploss of Rs 52,400 for the target of Rs 51,200 levels. They can also go for sell in silver at Rs 69,000 to Rs 69,200 levels with the stoploss of Rs 69,700 for the target of Rs 67,500 levels," said Anuj Gupta, VP-Research at IIFL Securities.

Amit khare, AVP- Research Commodities at Ganganagar Commodity, said,"Gold and Silver charts are showing some profit booking and trading at overbought zone and making a top, Profit booking may continue in bullions at higher side, Momentum indicator RSI also indicating the same in hourly as well as daily chart, So risky traders are advised to create fresh short positions near given resistance levels."

khare said traders should focus important technical levels given below for the day:

"April Gold closing price Rs 51,564, Support 1 - Rs 51,000, Support 2 - Rs 50,500, Resistance 1 - Rs 51,800, Resistance 2 - Rs 52,200. May Silver closing price Rs 68,325, Support 1 - Rs 67,700, Support 2 - Rs 67,000, Resistance 1 - Rs 68,600, Resistance 2 - RS 69,300."

On Tuesday, MCX gold prices corrected by 1.41 percent and closed at Rs 51,564 level. In the international markets, comex, it was trading at $1923 levels.

Silver price also corrected by 0.75 percent and ended at 68,325 levels, while in the COMEX it was trading at $25.14.

The expectation of an increase in the interest rate by the US Fed in the upcoming meeting put pressure on the bulliins. Positive talks between the warring countries may also curb the yellow metal demand.

Oil prices rose more than $1 on Wednesday, bouncing back after earlier declines, as Russia's invasion of Ukraine continues to stoke volatile trading with ceasefire talks the latest market trigger. Brent futures were up 97 cents, or 1 percent, at $100.88 a barrel at 0503 GMT. US West Texas Intermediate (WTI) crude rose 45 cents, or 0.5 percent at $96.89 a barrel. Both contracts had earlier declined more than $1 a barrel, with Brent falling to $98.86 a barrel and WTI easing to $94.90 a barrel earlier in the session.

(Edited by : Bivekananda Biswas)

First Published:Mar 16, 2022 11:52 AM IST