Gold Prices Today: Gold, Silver Futures Decline On Global Cues

Gold Price In India: Gold and silver futures traded lower on Wednesday, February 23, taking cues from the international spot rates. On the Multi Commodity Exchange (MCX), gold futures, due for an April 5 delivery, were last seen 0.31 per cent lower at Rs 50,172, compared to the previous close of Rs 50,328. Silver futures, due for a March 4 delivery, were last seen 0.18 per cent down at Rs 64,227 against the previous close of Rs 64,345.

Foreign Exchange Rates:

Globally, gold was flat, holding near a nine-month high hit in the last session, as safe-haven demand was offset by a rise in Treasury yields following the first wave of U.S. and European sanctions on Russia for sending troops into eastern Ukraine. The U.S., the 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 per ounce, after scaling its highest since June 1 at $1,913.89 per ounce on Tuesday. U.S. gold futures shed 0.3 per cent to $1,901.90.

Bullion is considered a hedge against inflation and geopolitical risks. Higher yields and interest rate hikes dent the appeal of bullion by raising the opportunity cost of holding non-interest paying gold.

Analyst View:

Ravindra Rao, CMT, EPAT, VP - Head Commodity Research at Kotak Securities: "Gold eased back from recent high as market reaction to Russia-Ukraine tensions subsided as a western reaction to Russia's troop movement was not seen as severe. U.S. bond yields bounced back from lows while the dollar index shed some of its recent gains. ETF investors also moved to the sidelines. Gold has retreated after failing to break past the $1920 per ounce level and we may see volatile trade as market players react to development relating to Russia however the general bias remains positive as geopolitical tensions are unlikely to subside soon."