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Gold Futures opened lower on Tuesday amidst weakness in crude and strengthening US bond yields. Gold April Futures on Multi Commodity Exchange (MCX) opened at ₹51,361, down ₹210 for most recent April contract. Silver May Futures tracked overall weakness in the bullion and opened lower at ₹67,880, down ₹225 on Tuesday.
International gold was under pressure following the US Fed's move of rate hike. Near month CME Gold Futures for April contract traded weak at $1921.7 on Tuesday.
Comex Gold
CME Gold April Futures opened at $1922.4 an oz (a troy ounce is equal to 31.1 grams) on Tuesday, against previous close of $1939.8. However, amidst fresh Covid-19 lockdowns in China and ongoing Ukraine-Russia conflict has maintained gold's safe-haven demand.
Comex Silver opened at $25.01 on Tuesday, little changed from previous close of $25.195. The most active CME May Futures contract weakened further during the day to trade below $25 levels at $24.96 an oz.
MCX Gold
After opening lower at ₹51,361, MCX April Gold Futures lost further ground to trade at ₹51,180 per 10 grams, down ₹391 or 0.76 per cent at 10.39 am Tuesday. The Open interest for April contract was at 5,157 lots.
MCX Silver Futures slipped further to trade at ₹67,569 a kg at 10.42 am down ₹536 or 0.79 per cent from previous close of ₹68.105.
The open interest was recorded at 5979 lots in the early trades.
Spot gold
Spot gold was marginally up on Monday at ₹51,691 per 10 grams of 999 purity fine gold as quoted by India Bullion and Jewellers Association (IBJA) for afternoon rates. The prices were marginally up from morning quotes by IBJA.
Analysts speak
Analysts believe gold prices were weighed by a spike in U.S. Treasury yields and a stronger dollar, and as hopes of progress in Russia-Ukraine peace talks. The multiple factors were seen hurting the demand for the safe-haven metal.
The benchmark US 10-year yields rose above 2.5 per cent to their highest level since May 2019 as bets of big rate hikes by the Federal Reserve to fight soaring inflation hammered bond markets.
Analysts see MCX Gold trading range for the day at ₹51161-51989, while MCX silver range is expected between 67418-68910.
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