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Gold Futures crossed important levels of ₹50,000 cent on Tuesday opening at the Multi Commodity Exchange (MCX) following mounting military tension between Russia and Ukraine. International Gold moved up to quote at $1,879.8 an oz in the early trades today.
On Tuesday, most active MCX Gold April contract opened at ₹50,170 per 10 grams, up ₹254 from previous close of ₹49,916. Gold has gained over ₹1,000 in two trading sessions.
MCX Silver March Futures too made positive opening with ₹317 gains tracking the overall strength in the bullion.
Comex Gold
CME Gold April Futures hit $1,881.3 levels intra-day on Tuesday, highest level since November 15.
On Tuesday Gold April contract opened with gains at $1873.8 an oz (a troy ounce is equal to 31.1 grams), up from previous close of $1869.4. The yellow metal was last traded at 1879.9 an oz in early trades.
Comex gold has maintained its upward rally for the eight straight sessions since February 4.
A 40-year high US inflation, coupled with looming war situation in the Eastern Europe region amidst stand-off between NATO and Russia over Ukraine has fuelled uncertainty in the global economic stability thereby triggering run for safe-haven assets.
Comex Silver too extended gains for the eighth straight session on Tuesday. CME Silver March contract briefly crossed $24 levels after opening at $23.885 an oz on Tuesday. Intra-day Silver March contract hit a high of $24.015, highest since January 26.
MCX Gold
Gold April Futures rallied to hit highest levels since June 2021. MCX Gold April contract opened at Rs 50,170 per 10 grams, up ₹254 from previous close of ₹49,916. The yellow metal has been on an upward trajectory since February 3 rallying by over ₹2,000 from ₹47,917.
The contract last quoted at ₹50,272 per 10 grams at 10.26 am on Tuesday, up 0.71 per cent from previous close. The Open interest for April contract was 11,386 lots.
MCX Silver Futures gained by half a percent on Tuesday extending gains further. The contract last quoted at ₹64,540 a kg at 10.26 am, up ₹307 from previous close. The open interest was recorded at 7,584 lots in the early trades on MCX.
Spot gold
Spot gold gained further strength tracking futures markets. The yellow hit highest levels in at least two months on Monday and quoted at ₹49,752 per 10 grams of 999 purity fine gold as quoted by India Bullion and Jewellers Association (IBJA) for afternoon rates.
Spot Silver too touched highest levels since January 24 to quote lower at ₹63,910 a kg on Monday, according to IBJA.
Analysts speak
The uncertainty over the possible war prevailed after diplomatic efforts to avert a Russian attack on Ukraine stepped up. The US had warned at the weekend that a Russian invasion of Ukraine could take place in the middle of the week.
Geopolitical uncertainty has fuelled the bullion amidst rising preference for safe haven asset.
From the recent peak levels, analysts expect MCX Gold Futures to trade between ₹49,222-50,358 on Tuesday, while silver is expected to trade in the range of Rs 62520-65394.
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