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Gold futures opened marginally lower on Tuesday, tracking broader global weakness and maintained a flat trade in early hours. The US Federal Open Market Committee (FOMC) is holding its scheduled policy meet today and tomorrow, i.e. December 14-15. Analysts expect the US Fed to address inflation concerns as the country saw its fastest rise in 40 years.
Gold February futures on Multi Commodity Exchange (MCX) opened at ₹48,258 per 10 grams, marginally down by ₹45 from previous close of ₹48,303. After initial weakness, gold prices returned to the positive territory trading nearly flat at ₹48,317. MCX Silver futures opened down by ₹169 at ₹61,413 per kg.
Comex Gold range-bound
International gold made advances on Monday to hit an intra-day high of $1,792 oz (a troy ounce is equal to 31.1 grams) before settling at $1,788.3 for CME February Gold Futures. On Tuesday, Comex gold opened marginally weak at $1,787.6 and last quoted at $1,785.5 in early trades.
Amidst inflation concerns, even though, gold is considered a safe-haven asset, the US policy makers’ decision to reduce stimulus and increase the interest rates on bonds will push up the bond yields, thereby making alternate asset classes attractive against the bullion. The most active Comex Silver contract for March opened nearly flat on Tuesday at $22.350 an oz.
MCX Gold Futures flat
Gold futures traded flat in a narrow range after opening in red. MCX February Futures were last quoted at ₹48,325 up ₹22 from previous close. The Open interest for the February contract was 8,756 lots, showed MCX data.
MCX Silver futures inched lower with loss of ₹101 on Tuesday. March contract last quoted at ₹61,481 with open interest of 13,087 lots in the early trades on MCX.
Spot Gold at highest levels since Nov 26
Spot gold and silver prices gained strength on Tuesday amidst revived consumption. The yellow metal was last quoted at ₹48,190 per 10 grams (999 purity), as quoted by India Bullion and Jewellers Association (IBJA) on Monday. This was the highest levels since November 26, when prices had hit ₹48,466. Spot silver was last quoted at ₹60,931 a kg (999 purity), marginally lower from previous close.
Outlook
Global developments coupled with the uncertainties around Omicron spread and its severity, analysts expect gold prices to stay firm in the range of ₹48,044 and ₹48,174. Silver prices are expected in the narrow range of ₹60,924-61,253 a kg.
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