MCX gold prices tumbled on Friday as investors' rush for the safety of bullion slowed ahead of a meeting between Russia and the US scheduled next week. MCX April gold future contract prices fell 0.48 percent to Rs 50,151 at 10 am.
In 2022, MCX gold prices increased by nearly 4 percent and international gold increased by 3.40 percent at $1900 levels. Rupee also depreciated by 1.06 percent at 75.09 levels.
"After Covid pandemic, now geopolitical tension and inflation are supporting the gold prices. We are expecting that safe haven demand may supports the yellow metal. Gold may test $1,950 to $2,000 levels incoming 3 to 4 months," said Anuj Gupta, Vice-President-research at IIFL Securities.
International gold prices also retreated after breaking above the key $1,900 level for a second consecutive session. Spot gold tumbled 0.3 percent to $1,890.77 per ounce, as of 0308 GMT, after touching its highest in eight months at $1,902.22 earlier in the session. On the other hand, US gold futures dropped 0.5 percent to $1,892.70.
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US stock futures bounced on Friday and selling pressure eased in Asian share markets after US Secretary of State agreed to a meeting with Russia's foreign minister, raising hopes for a diplomatic solution to the East-West standoff over Ukraine.
Gold prices rose on Thursday nearly 1.8 percent, breaking past $1,900/oz for the first time since June 11.
US 10-year Treasury yields firmed, increasing the opportunity cost of holding non-interest-paying bullion.
Spot gold, however, is set for a third straight weekly gain, up nearly 1.7 percent so far.
"In the short term, bullion market inflows have clearly been buttressed by Russia/Ukraine geopolitics, higher equity market vols, and inflation hedge demand," Reuters quoted analysts at Citi as saying in a note. Spot silver prices remained flat at $23.80 per ounce and palladium dipped 0.7 percent to $2,349.52, while Platinum gained 0.3 percent to $1,091.95.
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Cryptocurrencies were down on Friday, with Bitcoin falling more than 8 percent to trade at just above $40,000. US stock markets closed lower on Thursday as investors remained anxious over the possibility that Russia could invade Ukraine. Yields also came down as investors shifted money into low-risk US government bonds.
(Edited by : Bivekananda Biswas)
First Published: Feb 18, 2022 10:35 AM IST
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