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Informist, Wednesday, Jul 24, 2024

By Sandeep Sinha

MUMBAI – Futures contracts of gold rose on the Multi Commodity Exchange of India and COMEX today because of a weak dollar, which makes commodities priced in the greenback cheaper for holders of other currencies. At 2020 IST, the dollar index, which measures the strength of the greenback against a basket of major currencies, was down 0.3% at 104.12.

The positive sentiment for the yellow metal was also boosted by inflows to gold exchange-traded funds. On Tuesday, gold holdings with the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose by 1.73 tn to 841.74 tn. The fund has a market value of $65.02 bln.

At 2020 IST, the most active August GOLD contract on the MCX was up 1% at 69,180 rupees per 10 gm. The same-month contract on COMEX was up 1% at $2,430.90 per oz.

On the options front, the highest call open interest for gold is at 70,000-71,000 strike, which suggests a bullish view. On the downside, the highest put open interest is at 69,000-68,000 strike for the Jul 25 gold contract on the MCX.

SILVER prices rose tracking firm cues from COMEX and a positive trend in gold. At 2020 IST, the most-active September contract for silver on the MCX was up 0.8% at 85,558 rupees per kg. The same-month contract on COMEX rose 0.8% at $29.55 per oz.

On the options front, the highest call open interest for silver is at 90,000 strike, which suggests a bullish view. On the downside, the highest put open interest is at 85,000 strike for the Aug 27 silver contract on the MCX.

The MCX Bulldex, an index that tracks the real-time performance of gold and silver futures on the MCX, was up 130 points at 17662 points. As of 2020 IST, the August and October contracts of gold recorded turnovers of 39.33 bln rupees and 20.06 bln rupees, respectively, on the MCX. At the same time, the September and December contracts of silver saw turnovers of 27.81 bln rupees and 2.89 bln rupees, respectively.

The spot gold-silver ratio, also known as the Mint ratio, was a tad lower at 82.77, which indicates that gold underperformed silver. The ratio measures the ounces of silver required to buy an ounce of gold. The ratio was 82.80 on Tuesday.

Outlook for the rest of the session:
--MCX gold seen at 68,029–69,539 rupees per 10 gm
--COMEX gold seen at $2,405–$2,435 an oz
--MCX silver seen at 83,943-86,377 rupees per kg
--COMEX silver seen at $29.20-$29.70 an oz

End

US$1 = 83.72 rupees

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Aditya Sakorkar

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