Gold Futures opened lower on Monday and traded below ₹51,500 levels on Multi Commodity Exchange (MCX). MCX Silver Futures slipped into negative territory immediately after opening flat at ₹66,735. Comex gold was little changed in the opening at $1,927.1 on Monday against prior settle of $1,923.7 for the CME June contract.
Comex Gold
CME Gold Futures remained in a narrow range for the fourth day in a row. The yellow metal was last quoted at $1,920.9 an oz (a troy ounce is equal to 31.1 grams) in early trades on Monday for the CME June contract, lower from the previous close of $1,923.7 an oz.
CME Silver May Futures on Monday opened at $24.735 little changed against the previous close of $24.655. Gold prices had rallied from the lows of $1,803 levels in early January 2022 to scale a peak of $2,082 on March 8, 2022, making it the best quarter for the gold market in about two years.
The new quarter started on a flat note amidst inflationary concerns in various countries following the disruptions in logistics caused by the Ukraine-Russia war.
MCX Gold
MCX Gold June Futures traded under pressure on Monday. Gold was last quoted at ₹51,433 per 10 grams, down ₹173 or 0.34 per cent at 10.24 am Monday. Open interest for the June contract was quoted at 18,312 lots on Monday. Silver Futures traded flat with a marginal loss of ₹17 or 0.03 per cent on Monday to quote at ₹66,716 a kg at 10.55 am against the previous close of ₹66,733. The open interest for the silver contract was recorded at 6,522 lots.
Spot gold
Spot Gold was quoted at ₹51,638 per 10 grams of 999 purity fine gold as quoted by India Bullion and Jewellers Association (IBJA) for afternoon rates on Friday. The prices were marginally higher from the previous day's retail quotes.
Analysts speak
Gold remained under pressure during the past week following strong US jobs data, a firmer dollar, and rising US bond yields. Last week, Gold ended under significant pressure despite the 2-year and the 10-year Treasury yields inverting for the first time since 2019.
Many market participants view this as a possible red flag that recession could be around the corner. But risks prevailed with the Russia-Ukraine conflict continuing and China imposing fresh lockdowns following the rise in covid-19 cases.
"We expect both precious metals to remain volatile this week ahead of the FOMC meeting minutes. Gold has support at $1910-1895, while resistance at $1,940-1,950. Silver has support at $24.35-24.00, while resistance is at $24.95-25.24. In rupee terms, gold has support at ₹51,240-50,950, while resistance is at ₹51,950-52,220. Silver has support at ₹67,150-66,680 while resistance is at ₹68,100-68,550," said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.