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February 14 Gold futures jumped nearly one per cent on Monday opening at the Multi Commodity Exchange (MCX) amidst weak equities following the US inflation concerns and Russia-Ukraine military tensions.
Gold gained strength globally as Comex gold quoted above $1,850 an ounce.
On Monday, most active MCX Gold April contract opened at ₹49,512 per 10 grams — up ₹398 from previous close of ₹49,114.
MCX Silver March Futures too opened with strong gains of ₹706 tracking overall strength in the bullion pack.
Comex Gold
CME Gold April Futures traded above $1,850 levels maintaining the momentum from the Friday's gains. CME Gold April contract opened $1,862 an oz (a troy ounce is equal to 31.1 grams), up from previous close of $1,842.
Comex gold reported maximum volumes on Friday and hit an intra-day high of $1,867.4, highest since November 22, at $1,853.
International gold gained strength after US inflation hit 7.5 per cent — the highest in 40 years which triggered a sell-off in the equities prompting investors to turn to the haven asset. Adding fuel to the uncertainty is the Russia-Ukraine military stand-off which has further pushed up gold prices.
Silver futures on Monday tracked overall positive sentiment in gold. CME Silver Futures for March gained at the opening and traded at $23.6 an oz — the highest levels since January 27. CME Silver March contract opened at $23.60 and hit an intra-day high of $23.80 in initial trades on Monday.
Silver futures rallied for the seventh straight session.
MCX Gold
MCX Gold April Futures opened with sharp gains on Monday. MCX Gold April contract opened at ₹49,512 per 10 grams, up ₹398 from previous close of ₹49,114.
The yellow metal made further gains to inch closer to ₹50,000 levels. The contract last quoted at ₹49,489 per 10 grams at 9.56 am on Monday, up 0.76 per cent from previous close. The open interest for April contract was 11,426 lots.
MCX Gold futures traded at the highest levels since November 2021.
MCX Silver futures gained tracking stronger gold. Silver March contract gained by over one per cent at the opening on Monday. The contract last quoted at ₹63,690 a kg at 9.43 am, up ₹702 from previous close. The open interest was recorded at 8,179 lots in the early trades on MCX.
Spot gold
Spot gold gained tracking stronger futures, also supported by firming up demand following wedding season in parts of India. The yellow metal gained on Friday last quote at ₹48,920 per 10 grams of 999 purity fine gold as quoted by the India Bullion and Jewellers Association (IBJA) for afternoon rates.
Spot silver softened marginally to quote lower at ₹62,157 a kg on Friday, according to IBJA.
Analysts’ speak
US inflation hit a 40-year high levels, triggering a sell-off in the equities globally including the US and India on Monday. Growing military tension between Ukraine and Russia is also pushing up the global geopolitical uncertainty. These factors have contributed to the rally in the bullion.
Analysts expect MCX Gold futures to trade between ₹48,473 and ₹49,455 on Monday, while silver is expected to trade in the range of ₹61,659-63,725.
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