India Bullion
COMEX gold hits new high on safe haven demand, weak dlr
This story was originally published at 21:48 IST on 16 August 2024
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--COMEX Oct gold contract hits life high of $2,515.2 an oz
By Sandeep Sinha
MUMBAI – Futures contracts of gold on the COMEX touched a fresh lifetime, as weak economic data from the US and an increase in geopolitical tensions in West Asia boosted the metal's safe-haven appeal. The positive sentiment in precious metals was also aided by rising odds of the US Federal Reserve cutting interest rates as early as September, inflows in exchange-traded funds, and weakness in the dollar.
The dollar index, which measures the strength of the greenback against a basket of six major currencies, was down 0.3% at 102.72. A weak dollar makes commodities priced in the greenback attractive for holders of other currencies, boosting demand for precious metals.
At 1946 IST, the most active October GOLD contract on the MCX was up 1.4% at 71,120 rupees per 10 gm. The same-month contract on COMEX was 1.3% higher at $2,502.4 per ounce, after touching a new lifetime high of $2,515.2 per oz earlier in the day.
On the options side, the highest call open interest for gold was at 74000 rupees strike, while on the downside, the highest put open interest was at 69,000 rupees and 68,000 rupees strike for MCX Sep 24 gold contract.
On Wednesday, gold holdings with SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose by 2.02 tn to 847.78 tn. The fund has a market value of $66.68 bln.
SILVER prices rose on the MCX, tracking gains in gold and industrial metals. At 2000 IST, the most active September contract for silver on the MCX was up 2.6% at 82,151 rupees per kg. The same-month contract on the COMEX was down 0.2% to $28.36 per oz.
The MCX Bulldex, an index that tracks the real-time performance of gold and silver futures on the MCX, was up 254 points at 17719 points. As of 2000 IST, the October and December contracts of gold recorded turnovers of 54.80 bln rupees and 5.19 bln rupees, respectively, on the MCX. At the same time, the September and December contracts of silver saw turnovers of 46.06 bln rupees and 10.61 bln rupees, respectively.
The spot gold-silver ratio, also known as the Mint ratio, was higher at 87.61, which indicates that gold outperformed silver. The ratio measures the ounces of silver required to buy an ounce of gold. The ratio was 87.11 on Wednesday.
Outlook for the rest of the session:
--MCX gold seen at 70,500–71,500 rupees per 10 gm
--COMEX gold seen at $2,465–$2,520 an oz
--MCX silver seen at 81,000-82,600 rupees per kg
--COMEX silver seen at $28.00-$28.55 an oz
End
US$1 = 83.94 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Deepshikha Bhardwaj
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