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Gold Futures slipped into the negative territory after opening flat on the Multi Commodity Exchange (MCX) on Monday.
MCX Gold April contract opened at ₹50,120 per 10 grams, against previous close of ₹50,112. Silver futures opened down at ₹63,655 a kg against previous close of ₹63,902.
Comex Gold opened above $1,900, before slipping to $1893.8 in the early trades on Monday.
Uncertainty over the Russia-Ukraine crisis pushed up gold above $1900 - highest in eight months. However, an optimism of a possible diplomatic solution to the tension kept prices under check.
Comex Gold
CME Gold April Futures scaled further up to open at $1,903.5 an oz (a troy ounce is equal to 31.1 grams) on Monday, getting closer to the 8-month high of $1,904. The yellow showed upward momentum during the past week rising from $1,862 on February 14 to hit a high of $1,905 intra-day on Friday.
CME Gold futures saw heavy volumes on Thursday at 2,51,680 lots, highest for the April contract so far.
The prices moved up further on Monday to hit $1,910 making a volatile session. However, it couldn't sustain at the peak levels, and the prices softened to last quote at $1,895.1 an oz for CME April contract.
Comex Silver opened at $24.040 an oz on Monday, nearly flat from previous close of $23.990 for CME March contract.
Silver futures remained range-bound after slipping from the recent high of $24.115 recorded last week.
MCX Gold
MCX Gold Futures made weak opening on Monday. After opening above ₹50,000-level, the most active April contract slipped into negative territory amidst global weakness from the peak levels. Notably, the current levels in the yellow metal were last seen in June 2021 after the second Covid-19 wave in India.
On Monday, the most active April contract last quoted at ₹49,916 per 10 grams at 11.15 am, down ₹196 or 0.4 per cent from previous close. The Open interest for April contract was at 11022 lots.
MCX Silver Futures too weakened at the opening tracking gold movement. Silver opened in red on Monday and slipped further into negative zone. The March contract last quoted at Rs 63,364 a kg at 11.15 am, down Rs 538 or 0.84 per cent from previous close of Rs 63,902. The open interest was recorded at 6780 lots in the early trades.
Spot gold
Spot gold erased early gains and returned to below ₹50,000 on Friday. Initial trades quoted retail gold prices at ₹50,214, but the spot rates didn't sustain higher levels and fell to ₹49,972 per 10 grams of 999 purity fine gold as quoted by India Bullion and Jewellers Association (IBJA) for afternoon rates on Friday.
Spot Silver too softened from above ₹64,000 levels to end at ₹63,507 a kg, according to IBJA.
Analysts speak
Analysts expect global geopolitical uncertainties will keep gold prices higher. However, recent developments indicate that Russia and US may look for a non-military solution to the stand-off. But the investors continued to rush for safe haven assets amid escalating tensions over the possible conflict.
On the other side, in the US, the Federal Reserve will make its first interest rate high since 2018 within next four weeks. This is seen influencing the gold prices in the near term.
According to Kedia Advisory, MCX Gold Futures is expected to move between ₹49627-50517 on Monday, while silver range is expected to be ₹62954-64694.
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