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Informist, Tuesday, Aug 6, 2024

By Sandeep Sinha

MUMBAI – Futures contracts of GOLD fell on the Multi Commodity Exchange of India and COMEX today because of the firm dollar, which makes commodities priced in the greenback expensive for holders of other currencies, dulling demand for precious metals. The sentiment in the yellow metal was also hurt by profit-taking by traders.

At 2005 IST, the dollar index, which measures the strength in the greenback against a basket of six major currencies, was up 0.3% at 102.96.

At 2005 IST, the most active October gold contract on the MCX was down 0.6% at 68,921 rupees per 10 gm. The October contract on the COMEX was down 0.7% at $2,406.70 per oz. The highest call open interest for gold was at 70,000-74,000 strike, suggesting a bullish view, while the highest put open interest was at 70,000-68,000-strike for the Sep 24 contract.

On Monday, gold holdings with the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.57 tn to 845.47 tn. The fund has a market value of $65.00 bln.

SILVER prices were flat, taking cues from COMEX, after a sharp sell-off Monday. At 2015 IST, the most active September contract for silver on the MCX was flat at 79,600 rupees per kg. The same-month contract on the COMEX was unchanged at $27.21 per oz.

The MCX Bulldex, an index that tracks the real-time performance of gold and silver futures on the MCX, was down 110 points at 17240 points. As of 2020 IST, the October and December contracts of gold recorded turnovers of 44.39 bln rupees and 3.22 bln rupees, respectively, on the MCX. The September and December contracts of silver saw turnovers of 49.618 bln rupees and 7.20 bln rupees, respectively.

The spot gold-silver ratio, also known as the Mint ratio, fell to 88.23, which indicates that gold underperformed silver. The ratio measures the ounces of silver required to buy an ounce of gold. The ratio was 88.42 on Monday.

Outlook for the rest of the session:

--MCX gold seen at 67,793–70,072 rupees per 10 gm

--COMEX gold seen at $2,390–$2,435 an oz

--MCX silver seen at 78,213-80,744 rupees per kg

--COMEX silver seen at $27.00-$27.50 an oz

End

US$1 = 83.95 rupees

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

Edited by Rajeev Pai

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