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Gold futures on Multi Commodity Exchange (MCX) opened in red at ₹48,014 per 10 grams on Wednesday, down ₹58 from previous close of ₹48,072 for most active February contract.
International gold prices awaited a cue from the outcomes from the two-day policy meet of the US Federal Reserve amidst inflation concerns.
MCX Silver Futures opened down by ₹97 at ₹60,721 per kilogram.
1. Comex Gold breaks $1770 levels
Nervousness on possible monetary tightening measures by the US Fed is likely to impact gold advances. The yellow metal sliped below $1770 an oz (a troy ounce is equal to 31.1 grams) to touch intra-day low of $1766 before closing at $1772.3 for CME February Gold Futures on Tuesday. Gold made weak opening on Wednesday and hovered around $1770-1771.
Comex silver too tracked the weakness in gold and slipped below $22 an oz levels on Tuesday. CME silver March contract opened at $21.945 an oz and hit a low of $ 21.885 an oz in early trades.
2. MCX Gold Futures stays above Rs 48000 levels
After opening weak on Wednesday, MCX Gold Futures made marginal recovery to trade flat. The February contract was last quoted at ₹48,049, marginally down by ₹23 from previous close. The Open interest for the February contract was 8,539 lots, showed MCX data.
MCX silver futures traded in red in early hour on Wednesday at ₹60,765, down by ₹53 from previous close. The prices remained under pressure following the overall global weakness in the bullion. The open interest increased to 14,473 lots in the early trades on MCX.
3. Spot Gold stays firm, moves up
Spot Gold and silver maintained positive trend on a revived demand. The yellow metal was last quoted at ₹ 48,212 per 10 grams (999 purity), as quoted by India Bullion and Jewellers Association (IBJA) on Tuesday - further scaling up from previous day's quotes.
Spot silver, however, inched lower to quote at ₹60,885 (999 purity) per kg on Tuesday, marginally down from previously quoted.
4. Outlook
Analysts expect bullion to trade in a range-bound levels as the crucial policy decision is awaited from the US Federal Reserve amidst inflation concerns. Analysts expect gold futures to hover in the range of ₹47,683- 48,555. Silver may break below the ₹60,000 levels to hover in the range of ₹59,558-62,234 a kg.
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