Gold and silver prices today: Yellow metal continues to inch higher amidst dollar weakness. Should you buy bullion?

Gold prices on the Multi Commodity Exchange (MCX) opened on Tuesday at a price of Rs 58,493 per 10 grams and hit an intraday low of Rs 58,493. In the international market, prices hovered around $1,927.65 per troy ounce. Meanwhile, silver opened on Tuesday at Rs 70,500 per kg and hit an intraday low of Rs 70,473 on the MCX. The price hovered around $22.91 per troy ounce in the international market.

Last Tuesday, Gold prices on the MCX opened at Rs 59,222 per 10 grams and hit an intraday low of Rs 59,171. In the international market, prices hovered around $1,948.55 per troy ounce. Meanwhile, silver opened at Rs 72,400 per kg and hit an intraday low (at the same price) of Rs 72,257 on the MCX. The price hovered around $23.91 per troy ounce in the international market.

Anuj Gupta, Vice President of IIFL Securities, said, "Yesterday gold prices closed higher by 0.18 per cent, at 58403 levels on the back safe-haven demand due to political unrest in Russia. Weak US business sentiment data were also positive for the gold as it was negative for the dollar index. FOMC also indicates that the target of 2% inflation is still far and will take time to achieve. In the international market, it is trading at $1927 levels per ounce."

He sees technically strong support at 58000 and 57700 levels, and resistance at 58700 and 59000 levels. Today, one can buy around 58000-58100 levels with a stop loss of 57700 and for the target of 58700 to 58900 levels. Gold may test $1945 to $1950 levels in international markets.

Gold continues to inch higher, amidst a weaker dollar and uncertainty regarding Russia's internal fight which happened over the weekend, although prices hovered close to three-month lows as traders assessed prospects of more interest rate hikes by the U.S. Federal Reserve.

Manav Modi, Analyst, Commodity and Currencies, MOFSL, said, "Heavily armed Russian mercenaries withdrew from the southern Russian city of Rostov on Sunday, while authorities were still investigating the mercenary leader whose weekend mutiny appeared to be a major threat to the President Vladimir Putin's 23-year rule. Market participants adopted a more cautious approach as major central banks continue fighting inflation with rate hikes at the time most were believed to be already on pause and preparing to move in the opposite direction. Investors will get a fresh update on the possible future path of interest rates later this week, as US PCE price index is scheduled to release, as it is the Federal Reserve’s preferred inflation gauge and is still far away from Fed's target of 2%. Focus today will be on the US Core Durables goods orders and Consumer confidence data."