Gold Futures pulled back on Wednesday after rallying to 8-month-high levels on global geopolitical concerns.

On Multi Commodity Exchange (MCX), Gold April Futures fell by ₹117 to open at ₹50,211 per 10 grams against previous close of ₹50,328.

The Russian President Vladimir Putin on Tuesday attracted flak from NATO members and a number of non-NATO countries after he ordered troops to the Eastern Ukraine, which the West termed as an “invasion.”

This resulted into a series of countries imposing sanctions on Russia including banning a few top Russian banks as well as the Russian sovereign bonds.

Comex Gold opened above $1900 but remained below yesterday's intra-day peak of $1918.3.

Comex Gold

CME Gold April Futures opened marginally up at $1901.2 an oz (a troy ounce is equal to 31.1 grams) on Wednesday. The yellow metal lost strength to sustain at higher levels and slipped into red in the early trades.

Notably, gold has moved up by over $100 since the start of February rising from $1801 on February 1 amidst growing geopolitical tensions in the East Europe.

Investors preferred gold as safe haven asset amidst growing tension. April Futures saw highest volumes on Tuesday at 3,23,210 lots.

Comex Silver opened at $24.145 an oz on Wednesday, nearly flat from previous close of $24.310.

The CME March contract too remained under pressure tracking weakness in gold.

MCX Gold

MCX Gold Futures opened weak and slipped further into red tracking global weakness in the bullion. The April contract on MCX opened at ₹50,211 per 10 grams on Wednesday.

The most active April contract last quoted at ₹50,139 per 10 grams at 10.21 a.m. down ₹189 or 0.4 per cent from previous close. The Open Interest for April contract was at 11063 lots.

MCX Silver Futures lost by a quarter percentage or 0.25 per cent at early trades on Wednesday. The March contract last quoted at ₹64,192 a kg at 10.23 a.m., down ₹153 or 0.24 per cent from previous close of ₹64,223. The open interest was recorded at 5924 lots in the early trades.

Spot gold

Spot gold was quoted above ₹50,000 levels on Tuesday following the international uptrend in the yellow metal. Gold quoted at ₹50,131 per 10 grams of 999 purity fine gold as quoted by India Bullion and Jewellers Association (IBJA) for afternoon rates Tuesday.

Spot Silver moved above ₹64,000 to quote at ₹64,372 a kg on Tuesday, according to IBJA.

Analysts speak

Analysts expect gold and silver to remain volatile with bulls holding the charge on the future trajectory for the bullion. According to Rahul Kalantri, VP Commodities, Mehta Equities Ltd, "Both precious metals to remain volatile in today’s session but continue to hold its support levels. Gold has support at $1896-1884, while resistance at $1922-1934 per troy ounce. Silver has support at $24.00- 23.66, while resistance is at $24.60-24.88 per troy ounce."

MCX Gold is likely to move between 49727-50987, while for Silver price range is expected between ₹63,446 and ₹65,194 on Wednesday.

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