Comments
Gold futures opened in the red on Monday, tracking global weakness in the yellow metal.
Gold futures on Multi Commodity Exchange (MCX) opened at ₹47,393 per 10 grams, marginally down by ₹59 as against the previous close of ₹47,452.
Silver futures opened in the red at ₹60,439 a kg, down by ₹168 from previous close of ₹60,607.
Trend for precious metals remains directionless
International gold stayed below $1,800 and inched lower to quote at $1,789.5 in early trades on Monday.
Comex Gold loses $40 in three sessions
CME gold futures opened down at $1,796.4 an oz (a troy ounce is equal to 31.1 grams) on Monday. Gold stayed below the important psychological level of $1,800. The prices lost over $40 since the intra-day high of $1,830.7 recorded on Wednesday last week. Comex Gold Futures last quoted at $1,791.4 against previous close of $1,797.4.
The most active Comex Silver March contract opened at $22.385 an oz on Monday, flat against the previous close of $22.410.
MCX Gold down by 0.25%
MCX Gold February Futures opened in the red with marginal losses over the previous close. The yellow metal was last quoted at ₹47,343 per 10 grams, down ₹109 at 10.10 am Monday. The open interest for the February contract was 8,045 lots on Monday.
Base metals more precious than gold in 2021
MCX Silver Futures slipped further after opening in the red. Silver March contract was last quoted at ₹60,415 a kg, down ₹192 at 10.10 am on Monday. The open interest was recorded at 17,406 lots in the early trades on MCX.
Spot silver slips below ₹60,000
Spot gold stayed below ₹48,000 and weakened further to quote at ₹47,583 per 10 grams of 999 purity fine gold as quoted by India Bullion and Jewellers Association (IBJA) on Friday.
Spot silver made heavy losses over the past week and slipped below ₹60,000 on Friday. The spot silver last quoted at ₹59,991 a kg.
Analyst’s take
US economic indicators such as employment data showed steady and strong economic recovery. Also, US Fed’s hints over faster rate hike regime put additional pressure on gold prices.
According to Ravindra Rao, VP-Head Commodity Research at Kotak Securities, COMEX gold traded marginally lower near $1,795/oz after a 0.5 per cent gain in the previous session.
“Gold trades marginally lower weighed down by higher US bond yields amid Fed’s aggressive monetary policy stance. However, supporting price is mixed US jobs report, rising virus spread and concerns about health of Chinese economy. Gold fell sharply in last few days after failing to break past the $1,830/oz level but price has managed to hold above $1,780/oz. With mixed factors in place, price may remain range-bound near $1,800/oz. However, general bias may be on the downside as Fed’s stance may weigh on the US dollar.”
MCX Gold is expected in the range of ₹47,160-47,732, while silver is likely to hover around ₹59,735-61,161.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.