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Gold Futures on Multi Commodity Exchange (MCX) up ₹244 at ₹48,331 per 10 grams on Thursday against the previous close of ₹48,087 for the most active February contract.
Comex gold bounced back from the recent lows of $1,753. In early trades on Thursday, CME Gold February Futures jumped $31 from Wednesday’s intra-day lows of $1,753. After opening firm at $1,777.9, Gold futures scaled up to $1,784.6 intra-day in early trades on Thursday.
MCX Silver March Futures opened gap-up with opening gains of ₹1,195 at ₹61,403 per kilogram against the earlier close of ₹60,208.
Comex Gold jumps by over 1%
Comex gold was seen up following weakening of dollar and persistent pandemic concerns as flagged by the US Federal Reserve after its FOMC meet.
CME Gold February Futures last quoted at $1,782.8 an oz (a troy ounce is equal to 31.1 grams), which is about $30 higher from Wednesday’s intra-day lows of $1,753, which was lowest levels since October 6. The nervousness in Comex Gold was primarily due to the uncertainty ahead of the US Fed’s FOMC decision.
The Thursday’s rally in gold prices is attributed to the US Federal Reserve’s FOMC monetary meet outcome, where the US regulator took a hawkish stance to control inflation. However, US dollar index weakened after US Fed’s monetary policy decision, triggering a bullish sentiment for yellow metal.
Comex Silver tracked firm gold but posted marginal gains to recover from Wednesday’s lows. CME Silver March contract opened at $22.070 an oz and was last quoted at $22.140 an oz on Thursday.
MCX Gold Futures gains ₹268 intra-day
After losing by ₹231 since Monday, MCX Gold Futures bounced back with opening gains of ₹268 intra-day on Thursday. The February contract was last quoted at ₹48,355 with heavy buying interest. The Open interest for the February contract was 8,500 lots, showed MCX data.
MCX Silver Futures traded firm in early trades on Thursday at ₹61,473 up ₹1,265 from previous close. The open interest was recorded at 13,208 lots in the early trades on MCX.
Spot Gold inches up
Supported by a revival in demand, Spot Gold inched up to quote above ₹48,065 per 10 grams (999 purity) as quoted by India Bullion and Jewellers Association (IBJA) on Wednesday.
Spot Silver, however, weakened further to quote at ₹60,251 (999 purity) a kg on Wednesday, marginally down from previously quoted.
Outlook
Analysts expect bullion to trade firm. Gold has bounced back after taking support near $1750/oz and as market players took Fed decision in stride. However monetary tightening tilt of major central banks is negative for gold and may keep pressure on prices, maintained Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities.
Analysts expect gold futures to hover at ₹47,802-48,382 per 10 grams. Silver is expected to hover in the range of ₹59,480-61,348 a kg.
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