Gold futures for April 5 futures delivery were 0.31% lower at Rs 50,172.
Gold price in India: Gold and silver futures traded lower on Wednesday, February 23, taking cues from international spot rates. On the Multi-Commodity Exchange (MCX), gold futures for April 5 delivery were 0.31% lower at Rs 50,172 from the previous close of Rs 50,328. Silver for March 4 futures futures was down 0.18% at Rs 64,227 from the previous close of Rs 64,345.
Exchange rate:
Globally, gold was flat, holding near a nine-month high in the previous session, as safe-haven demand was offset by rising Treasury yields following the first wave of US sanctions and Europe towards Russia for sending troops into eastern Ukraine. The US, European Union and Britain announced plans to target banks and elites while Germany halted a major gas pipeline project from Russia.
Spot gold was little changed at $1,898.63 an ounce, after hitting its highest since June 1 at $1,913.89 an ounce on Tuesday. US gold futures fell 0.3% to $1,901.90.
Bullion is seen as a hedge against inflation and geopolitical risks. Higher yields and rising interest rates reduce the appeal of bullion by increasing the opportunity cost of holding zero-interest gold.
Analyst view:
Ravindra Rao, CMT, EPAT, VP – Head of Commodity Research at Kotak Securities: “Gold bounced back from recent highs as market reaction to Russia-Ukraine tensions eased as Western reaction to Russian troop move is not seen as severe. US bond yields. bounce off lows while dollar index shed some recent gains Gold ETF investors retreated after failing to break above 1920 USD/ounce and we could see volatile trading as market participants react to developments regarding Russia. However, the overall trend remains positive as geopolitical tensions are unlikely to subside anytime soon.”
