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Gold Futures hit a record high at ₹51,543 on the Multi Commodity Exchange (MCX) on Monday. The April contract hit the highest levels since ₹51,532 seen on May 28, 2021.
In spot markets retail gold prices stayed above ₹50,000 per 10 grams on Monday.
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Bullion Cues: High volatility set to stay
Gold and silver futures on the MCX remain above a key levelThe fourth day of the intense Russian military action in Ukraine made gold a preferred bet for investors. However, renewed hopes on peace talks between the two sides that is likely to be held later today has restricted further upside in the yellow metal.
On Monday, CME Gold Futures opened at $1,921, up $33 from the previous close. But the yellow metal slipped into negative territory to trade at $1,900 ahead of the scheduled peace talks to be held at Ukraine-Belarus border today.
Comex Gold
CME Gold April Futures opened with sharp gains on Monday at $1,921. But the dynamic war situation at Ukraine and emerging hopes of a peace dialogue pulled back gold to $1,902.4 an oz (a troy ounce is equal to 31.1 grams) on Monday after recovering from the day's lows of $1,895.5. The yellow metal is off from 1.5-year high of $1,976.50 seen on February 24, when Russian forces invaded Ukraine.
Comex Silver too moved up at the opening on Monday but retreated from intra-day highs to quote at around $24.35 an oz. The prices are off from the 7-month peak of $25.7 an oz reported on February 24 amidst massive volatility.
The most active CME May Futures last quoted at $24.33 on Monday, against previous close of $24.01.
MCX Gold
MCX Gold Futures opened at ₹50,999 on Monday, extending the previous week's uptrend. The prices, however were lower from the 10-month high levels of ₹51,543 per 10 grams reported on February 24.
The most active April contract last quoted at ₹50,730 per 10 grams at 14.15 up ₹509 or one per cent from previous close. Open interest for April contract was at 10,862 lots.
MCX Silver March Futures tracked the uptrend in gold and opened in positive territory with about one per cent gains on Monday.
The most active May contract last quoted at ₹65,680 a kg at 14.22, higher by ₹775 or 1.19 per cent from previous close of ₹64,905. The open interest was recorded at 4,505 lots in the early trades.
Spot gold
Spot gold was led by Futures rates on Monday. In physical markets, the retail gold prices hovered above ₹50,000 per 10 grams amidst heavy volatility in the international prices.
As per last available data, Spot Gold last quoted at ₹50,890 per 10 grams of 999 purity fine gold quoted by India Bullion and Jewellers Association (IBJA) for morning rates on Monday. The prices are lower from the highs of ₹52,540 per 10 grams reported on February 24.
Analysts’ take
Analysts maintained that safe-haven demand has pushed the sentiment up for bullion.
A lot seems to be in store for traders/investors as markets are yet to react to the new developments over peace talks, NATO's extended sanctions on Russia and the Russian President Vladimir Putin ordering his nuclear deterrence forces to be on their "Highest state of alert". This comes on the back of the US and other Western nations' move to support Ukraine with military aid and arsenal.
Analysts see an uncertain week ahead with gold prices likely to move between $1,900 and $2,000 $f tension prevails.
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