Gold may remain volatile as the Russia-Ukraine situation is assessed, however safe haven buying may keep prices supported, said Ravindra Rao of Kotak Securities.
Gold prices went flat on March 3 in the international markets as risk appetite improved after the US Federal Reserve chairman tried to assuage fears about aggressive interest rate hikes, offsetting safe-haven demand spurred by the Russia-Ukraine conflict.
On the Multi-Commodity Exchange (MCX), gold contracts were up 0.54 percent at Rs 51,570 for 10 grams at 9.26 am but silver added 0.41 percent at Rs 67,240 a kilogram.
COMEX gold trades modestly higher near $1930/oz after a 1.4 percent decline on March 2. Gold trades higher amid lack of any overtly hawkish comments from Fed Chairman as he expressed support for rate hike while indicating that they are keeping an eye on Russia-Ukraine tensions. Safe haven buying and inflation concerns has also kept prices higher however stability in the equity market has kept a check on the upside. Gold may remain volatile as Russia-Ukraine situation is assessed, however safe haven buying may keep prices supported, said Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities.