Commodities

Gold futures weak but maintains above ₹48,000

BL Internet Desk | | Updated on: Jan 04, 2022
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Comex bold loses $35 intra-day on Monday, makes flat opening

Gold futures made marginal gains on Tuesday, but remained under ₹48,000 levels. Most active February contract on Multi Commodity Exchange (MCX) opened up by ₹94 at ₹47,810 per 10 grams on Tuesday. MCX Silver March Futures opened down by ₹28 at ₹61,713 a kg on Tuesday against previous close of ₹61,741. International gold, lost about $35 intra day on Monday to close at $1,800 after hitting an intra-day high of 1,833. On Tuesday, CME Gold futures opened at $1,801.1, nearly flat over Monday’s closing.

Comex Gold above $1800 amidst weakness

CME gold futures was last quoted at $1,804.1 an oz (a troy ounce is equal to 31.1 grams) in early trades on Tuesday. Gold prices had pared most of gains and had slipped by about $35 intraday a day ago, amidst a jump in the US dollar and elevated US treasury yields.

The most active comex Silver March contract tracked overall weakness in the bullion. But maintained above $22. CME Silver March Futures last quoted at $22.825 an oz at the early trades on Tuesday. The prices pared yesterday’s gains and slipped from the intra-day high of $23.44, highest levels seen since November 29.

MCX Gold Futures trades weak

MCX Gold February Futures opened positive, but remained below ₹48,000 levels. The yellow metal was last quoted at ₹47,777 per 10 grams, down ₹61 at 11.07 am Tuesday. The open interest for the February contract was 8,289 lots on Tuesday.

After opening in red, MCX Silver Futures returned to positive territory, but maintained below ₹62,000 levels.

Silver March contract was last quoted at ₹61,775 a kg, down ₹34 at 11.07 am on Tuesday. The open interest was recorded at 13,195 lots in the early trades on MCX.

Spot Gold quotes ₹48,333

Spot gold traded firm. Yellow metal was ₹48,333 per 10 grams of 999 purity fine gold, as quoted by India Bullion and Jewellers Association (IBJA) for Monday afternoon rates.

Gold quoted at the highest levels since December 20.

Spot silver inched up to quote at ₹62,255 a kg on Monday afternoon trades.

Analysts speak

Ravindra Rao, VP - Head Commodity Research at Kotak Securities, stated that COMEX gold traded marginally higher near $1805/oz after a sharp 1.6 per cent decline yesterday.

“Gold fell sharply after failing to sustain above $1830/oz level. Gold came under pressure as bond yields and US dollar index edged up as market players shifted focus to Fed’s monetary policy stance, ahead of FOMC minutes and jobs report. Gold has come off the highs, but is still near the key $1,800/oz level and we may see volatility continue reflecting in the larger market. However, rise in yields and US dollar may weigh on prices,” he added.

On MCX, analysts expect gold prices to hover around 47,407-48,285 and silver at 60,803-63,107.

Published on January 04, 2022

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