Gold futures opened flat on Wednesday and hovered above ₹48,400 on the Multi Commodity Exchange (MCX) amid mixed global cues from the ongoing Ukraine crisis and US Fed rate hike.
The most active MCX Gold April contract opened at ₹48,425 per 10 grams, little changed from the previous close of ₹48,429.
MCX Silver March Futures gained ₹134 to open at ₹62,501 a kg against the previous close of ₹62,367.
Comex gold futures further extended gains on Wednesday to quote at the highest levels after January 27.
Comex gold extends gains
CME Gold April Futures opened at $1,827 an oz (a troy ounce is equal to 31.1 grams) on Wednesday, little changed from the previous close of $1,827.9. Gold futures have gained momentum following the rising geopolitical uncertainty around the Russia-Ukraine crisis. The yellow metal surged to an intra-day high of $1,829.9 yesterday, the highest since $1,823.8 on January 27.
Silver futures moved up on Wednesday. CME Silver March Futures opened little changed at $23.195 an oz, against the previous close of $23.200. However, it scaled up further to make intra-day gains at $23.335, the highest since $22.83 recorded on January 28. Notably, Comex silver has been on an uptrend for the past four trading sessions.
MCX gold on an upward path
MCX Gold April Futures opened flat on Wednesday but inched up in the early trades. The yellow metal gained ₹45 to last quote at ₹48,474 per 10 grams at 10.51 am on Wednesday. The open interest for April contract was 11,476 lots.
MCX Silver Futures made nearly 0.5 per cent gains at the opening on Wednesday. Silver March Futures last quoted at ₹62,639 a kg at 10.38 am. The open interest was recorded at 10,628 lots — lower than yesterday — in the early trades on MCX.
Spot gold surges on firm demand
With demand firming up in the spot markets, the yellow metal inched up on Tuesday to quote at ₹48,444 per 10 grams of 999 purity fine gold, according to India Bullion and Jewellers Association (IBJA), for afternoon rates.
Silver, too, gained strength in the spot markets to quote at ₹61,618 a kg, according to IBJA.
Analyst-speak
Geopolitical tensions over the Ukraine crisis and inflation concerns persisted and countered the possible impact of US interest rate hike on precious metals. Investors were seen balancing between the two important events as prices remained range-bound but with a broader upward trend.
Analysts expect MCX Gold futures to move at ₹48,059-48,659, while silver is expected to trade in the range of ₹61,176-63,064.