After opening with marginal loss on Thursday, Gold Futures made strong gains on the Multi Commodity Exchange (MCX) rising by 0.41 per cent or ₹201 in the early trades. The yellow metal remained followed upside in the international gold as Comex Gold inched up to trade above $1,870 an oz on Thursday.
The movement in bullion reflected mixed sentiment arising from the Russia-Ukraine military conflict. Although Russian side claimed beginning of withdrawal of troops, the NATO remained apprehensive about the presence of the military built-up on ground indicating looming threat of a war.
CME Gold April Futures opened at $1,872 an oz (a troy ounce is equal to 31.1 grams) on Thursday, marginally up from previous close of $1,871.5 an oz. The yellow metal hit a high of $1,878.9 in early trades.
Investors returned to gold after prevailing uncertainty over geopolitical tension in the Eastern Europe. After temporary cooling-off on Wednesday, the yellow metal resumed its uptrend on Thursday.
Comex Silver continued downtrend for the second day on Thursday. CME Silver March contract opened at $23.645 an oz unchanged from the previous close of $23.605. Silver has slipped from the recent high of $24.015 recorded on Tuesday.
MCX Gold Futures strengthened after weak opening on Thursday tracking the international sentiment. The most active April contract opened at ₹49,577 per 10 grams, down ₹41 from previous close of ₹49,618.
However, the yellow metal jumped to positive territory with strong gains and the most active April contract last quoted at ₹49,819 per 10 grams at 10.14 am on Thursday, up 0.41 per cent from previous close. The Open interest for April contract was 11,366 lots.
MCX Silver Futures tracked gold movement on Thursday. After opening in red briefly, silver traded positive with marginal gains. The March contract last quoted at ₹63,351 a kg at 10.15 am, up ₹52 or 0.08 per cent from previous close of ₹63,299. The open interest was recorded at 7,559 lots in the early trades.
Spot gold softened on Wednesday from the previous day's levels of ₹50,356 per 10 grams recorded early on Tuesday. The retail spot gold was quoted at ₹49,457 per 10 grams of 999 purity fine gold as quoted by India Bullion and Jewellers Association (IBJA) for afternoon rates.
Spot Silver too softened from Tuesday's early levels of ₹64,440 a kg and quoted at ₹63,234 a kg on Wednesday, according to IBJA.
Besides the Russia-Ukraine crisis, factors such as US inflation concerns influenced the gold prices in the short run. Analysts were seen keeping a close tab on the US Federal Reserve's rate hike plans. It is to be seen how aggressively US Federal reserve will increase rates in their upcoming March meeting.
MCX Gold Futures to trade is expected to move in a narrow range of ₹49,098-49,920 on Thursday, while silver range is expected to be ₹62,500-63,860.