Informist, Wednesday, Mar 2, 2022
By Chinmay Mungse
MUMBAI – Futures of GOLD and SILVER slipped into the red today on the Multi Commodity Exchange of India and COMEX as the contracts witnessed correction after surging to multi-month highs in the past week.
* However, analysts believe that price of gold is likely to remain elevated amid the ongoing war between Russia and Ukraine, which will preserve the safe-haven appeal of the yellow metal.
* Tensions continued between Russia and Ukraine after no breakthrough was made in the peace talks between the two countries. Traders drifted towards the precious metal, boosting its demand as a safe-haven asset.
* Russian officials are ready to hold another round of talks with Ukraine, Kremlin has said. Ukrainian President Volodymyr Zelenskyy said Russia must stop bombing cities before any further discussions could take place.
* “Investors are swaying away from the riskier asset classes and placing bets on gold in the view of the developments in the Russia-Ukraine war,” said Manoj Jain, research head at Prithvi Finmart.
* Apart from the geopolitical woes, higher inflation in the US and other major economies has supported gold prices as it is used as a hedge against rising prices.
* Gold holdings with the SPDR Gold Trust rose by 13.36 tn to an eight-month high of 1,042.38 tn on Tuesday, according to data on the website of the world’s largest gold exchange traded fund.
* At 1710 IST, most active contracts of bullion were:
–April gold was down 0.5% at 51,571 rupees per 10 gm on MCX
–April gold was down 0.7% at $1,931.1 an ounce on COMEX
–May silver was down 0.6% at 67,742 rupees per kg on MCX
–-May silver was down 1.4% at $25.19 an ounce on COMEX
* Outlook for the evening session:
–MCX gold seen at 51,360-52,075 rupees
–COMEX gold seen at $1,913-$1,963
–MCX silver seen at 65,785-68,915 rupees
–COMEX silver seen at $24.70-$26.48
End
US$1 = 75.72 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Deepshikha Bhardwaj
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