Gold futures gained nearly 1% on the Multi Commodity Exchange (MCX) on Tuesday. Global markets rallied after Russian President Vladimir Putin ordered troops into eastern Ukraine late Monday, raising fears of a military conflict in Eastern Europe.
The April MCX Gold contract opened with gains of Rs 383 to Rs 50,461 for 10 grams, against the previous close of Rs 50,078. Silver futures also gained following the bullish sentiment global in the bullion pack. The March contract opened Rs 608 at Rs 64,323 per kg against an earlier close of Rs 63,591.
Comex Gold opened above $1900 and rose further to hit an intraday high of $1918.3 in initial trades.
CME Gold April Futures gained strength amid geopolitical tensions in Eastern Europe. The yellow metal opened at $1903.5 an ounce (one troy ounce equals 31.1 grams) on Tuesday. Prices rose further to an intraday high of $1918.3, reaching the highest levels since May 2021.
Gold has risen more than $100 since the start of February, rising from $1801 on Feb. 1 to $1918.3 on Tuesday as war risks persisted.
Comex Silver opened at $24.060 an ounce on Tuesday, nearly flat from the previous close.
The CME March contract maintained an upward trend for the fourth straight session, hitting an intraday high of $24.245 during the day.
MCX Gold Futures tracked the overall strength of global bullion markets. The April contract on MCX made a strong open on Tuesday to trade above the Rs 50,000 level.
The most active April contract was last quoted at Rs 50,487 for 10 grams at 09:17, up Rs 409 or 0.8% from the previous close. Open interest for the April contract was 11,236 lots.
MCX Silver Futures gained more than 1% on Tuesday to trade with strong gains of over 700 rupees. The March contract last traded at 64,323 rupees per kg at 09:17, up 732 rupees or 1.15% from the previous close of 63,591 rupees. Open interest was recorded at 6449 lots in early trades.
Gold in spot markets recovered to levels of Rs 50,000 on Monday amid global uncertainty and war crisis. Gold is quoted at Rs 50,089 for 10 grams of 999 fine gold, as quoted by the India Bullion and Jewelers Association (IBJA) for Monday afternoon rates.
Spot Silver made marginal progress in the retail markets to quote at Rs 63,661 per kg, according to IBJA.
On Monday evening, Russian President Vladimir Putin addressed the nation, announcing the independence of the two breakaway regions in eastern Ukraine. Putin ordered troops for these regions, increasing the possibilities of military conflicts with Ukraine and NATO, including the United States and Europe.
MCX gold and silver futures are expected to remain higher in Tuesday’s trading session.
February 22, 2022