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Ahmedabad, February 25 After the dramatic volatility on Thursday, gold futures opened lower on Friday as traders reassessed war concerns, appearing to be confined to two-nation conflict as NATO members refrained from joining Ukraine in a military action against Russia.
On Multi Commodity Exchange (MCX) gold April futures fell by ₹500 or about 1 per cent to open at ₹51,043 per 10 grams against previous close of ₹51,543.
Comex gold opened above $1,900 an ounce but remained below yesterday's intra-day peak of $1,976.5.
Russian President Vladimir Putin's declaration of war against Ukraine triggered panic among investors and traders, who rushed for safe haven assets. However, NATO members including the US and European nations preferred to stay away from armed retaliation to what they called "Russian aggression". This prompted traders to reassess the war concerns, which didn't seem to spill over to larger geographies.
Comex Gold
CME Gold April futures opened with a loss at $1,906.5 an oz (a troy ounce is equal to 31.1 grams) on Friday against previous close of $1,926.3. The yellow metal saw a $90 movement intra-day as it touched a 1.5-year high of $1,976.50 on Thursday before slipping to the day's low of $1,878.6.
April Futures saw highest volumes on Thursday at 4,09,954 lots.
Comex Silver too touched a seven-month high of $25.7 an oz intra-day on Thursday amidst massive volatility. But CME March futures could'nt sustain at the higher levels and fell to $24.33 at the opening on Friday, against previous close of $24.71.
MCX Gold
MCX Gold Futures tracked global volatility on Thursday to hit a 10-month high levels of ₹51,543 per 10 grams. The April contract fell by 1 per cent at the opening on Friday and slipped further below ₹51,000 levels.
The most active April contract last quoted at ₹50,950 per 10 grams at 10.51 am — down ₹593 or 1.15 per cent from previous close. The open interest for April contract was at 11,280 lots.
MCX Silver March futures lost ₹917 or nearly a percentage point at the opening on Friday. The March contract was last quoted at ₹65,610 a kg at 10.51 am, down ₹1,288 or 1.93 per cent from its previous close of ₹66,898. The open interest was recorded at 3,642 lots in the early trades.
Spot gold
Spot gold skyrocketed on Thursday amidst war fears. Prices crossed ₹52,000 per 10 grams in retail markets following the heavy volatility in the international prices. As per last available data, the yellow metal quoted at ₹52,540 per 10 grams of 999 purity fine gold quoted by India Bullion and Jewellers Association (IBJA) for afternoon rates Thursday.
Spot silver jumped by nearly ₹4,000 to quote at ₹68,149 a kg on Thursday, against previous day's quote of ₹64,203 a kg, according to IBJA.
Analysts speak
Analysts expect gold and silver to be volatile but remain under pressure as inflation concerns prevail across the West.
The investors are also keeping a close watch on accelerating inflation in the US and ensuing rate hikes from the Federal Reserve, which may prompt investors to look for riskier assets for higher returns.
However, Ukraine crisis will continue to fuel uncertainty as global leaders push for stricter economic and trade sanctions on Russia.
For Friday, MCX Gold is likely to move between ₹49,716 and ₹53,710, while for silver the price range is expected between ₹62,928 and ₹69,648.
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