Gold Futures made a flat opening on the Multi Commodity Exchange (MCX) on Friday amidst uncertainty in the international markets.
MCX Gold February contract opened at ₹47,517 per 10 grams, marginally higher by ₹66 as against the previous close of ₹47,451.
Silver futures extended its losses and slipped further on Friday. MCX Silver March contract opened in the red at ₹60,373 a kg, down by ₹53 from previous close of ₹60,426.
International gold breached the psychological level of $1,800 and inched lower to quote at $1,790 in early trades on Friday.
Comex Gold below $1,800 levels
CME gold futures opened marginally down at $1,791 an oz (a troy ounce is equal to 31.1 grams) in early trade on Friday. Gold breached the important psychological level of $1,800 on Thursday losing from the intra-day high of $1,811.6 before settling at $1,789.2 for the day. Comex Gold futures slipped below the $1,800 level after sustaining above the mark for past 10 sessions.
The most active comex Silver March contract opened lower at $22.195 an oz on Friday, flat against previous day's close of $22.190. CME Silver March Futures has lost over $1.2 from intra-day high of $23.3 an oz recorded on January 5.
MCX Gold trades flat
MCX Gold February futures opened positive with marginal gains but maintained a flat movement against previous close. The yellow metal was last quoted at ₹47,435 per 10 grams, down ₹16 at 11.17 am Friday. The open interest for the February contract was 8,043 lots on Friday.
MCX Silver futures lost nearly ₹2,000 since Wednesday. Prices slipped further after opening in red. Silver March contract was last quoted at ₹60,274 a kg, down ₹152 at 11.17 am on Friday. The open interest was recorded at 17,776 lots in the early trades on MCX.
Spot Gold steady at ₹47,800
Spot gold stayed below ₹48,000 as investors preferred other asset classes over the safe-haven asset. Gold in spot market was last quoted at ₹47,832 per 10 grams of 999 purity fine gold as quoted by India Bullion and Jewellers Association (IBJA) on Thursday.
Spot Silver lost nearly ₹1,000 in past two days to quote at ₹60,435 a kg on Thursday against ₹61,496 a kg quoted earlier this week.
Analysts speak
Analysts maintained that while some investors continue to view gold as a hedge against higher inflation, the bullion is seen highly sensitive to the rising US interest rates. This increases the opportunity cost of holding non-yielding bullion, thereby prompting investors to look for riskier assets.
MCX Gold is expected to move between ₹47,107-48,037, while silver prices are likely to breach ₹60,000 levels towards the lower end, while it is expected to hover around ₹59,043-62,741.