Gold futures opened higher by nearly one per cent or ₹500 on Thursday, tracking firm international trends.

Gold April Futures on Multi Commodity Exchange (MCX) opened at ₹51,643, up ₹496, while silver futures too opened higher at ₹68,453, up ₹1,149, for the most active contract.

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International gold too advanced on Thursday following the anticipated rate hike by the US Federal Reserve. After a six-day losing streak, the CME April Futures opened positive at $1,928.4 against the previous close of $1,909.2.

Comex gold

CME Gold April Futures gained more than $20 on Thursday to trade at $1,933.1 an oz (a troy ounce is equal to 31.1 grams) in the later trades. The prices, however, remained sharply lower from last week's all-time high of $2,078 an oz on March 8.

The upward move in the yellow metal indicated persistent investor preference for gold as an inflation hedge and safe haven.

US Federal Reserve, after its two-day March Federal Open Market Committee (FOMC) meet, announced 25 bps hike in interest rates, which was in line with traders' expectations.

Even as warring Ukraine and Russia indicated progress in peace talks, concerns persisted along with inflation worries for western nations, which kept the bullion higher.

Comex Silver opened above $25 levels on Thursday after closing weaker at $24.710 yesterday. The most active CME May Futures contract last quoted at $25.375 an oz on Thursday.

MCX gold

After opening higher at ₹51,643, MCX April Gold Futures traded in positive territory. The April contract last quoted at ₹51,444 per 10 grams at 11.56 am, up ₹297 or 0.58 per cent from the previous close of ₹51,147. The open interest for the April contract was at 8,431 lots.

MCX Silver Futures too tracked the overall bullion rally in international markets.

The most active MCX Silver May contract last quoted at ₹68,227 a kg at 11.56 am, up ₹923 or 1.37 per cent, from the previous close of ₹67,304. The open interest was recorded at 5,956 lots in the early trades.

Spot gold

On Thursday, Spot Gold was nearly unchanged at ₹51,372 per 10 grams of 999 purity fine gold, as quoted by India Bullion and Jewellers Association (IBJA) for morning rates. Spot gold quoted at ₹51,345 per 10 grams yesterday.

Analyst-speak

Ajay Kedia of Kedia Advisory said gold prices have advanced following a slump in the dollar index after the US Fed's FOMC meet. This comes after US Federal Reserve chairperson Jerome Powell indicated a quick policy tightening timeline.

"The US Fed raised interest rates by 25 bps, as scheduled. Powell said it would shrink the table as soon as May and speed up the policy tightening, if necessary," said Kedia.

MCX gold trading range for the day is expected to be ₹50,740-51,722, while MCX silver range is expected at ₹66,459-68,621.

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