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Informist, Thursday, Aug 22, 2024

By Sandeep Sinha

MUMBAI – Futures contracts of GOLD on the Multi Commodity Exchange of India and COMEX fell today because of a recovery in the dollar, which makes commodities priced in the greenback expensive for holders of other currencies. Sentiment for the yellow metal was also hurt by outflows from exchange-traded funds.

At 1845 IST, the dollar index, which measures the strength in the greenback against a basket of six major currencies, was up 0.2% at 101.29.

On Wednesday, gold holdings with SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell by 0.57 tn to 856.70 tn. The fund has a market value of $68.79 bln.

At 1855 IST, the most active October gold contract on the MCX was down 0.5% at 71,445 rupees per 10 gm. The October contract on the COMEX was down 0.6% at $2,506.60 per oz. The highest call open interest for gold was at the 74,000-rupee strike, suggesting a bullish view, while the highest put open interest was at the 68,000-rupee strike for the Sep 24 gold contract.

Investors await US Federal Reserve Chairman Jerome Powell's speech on Aug 23 at a central bankers' conference in Jackson Hole, Wyoming, for further guidance on the central bank's monetary policy stance.

SILVER prices were flat, taking cues from COMEX, as weakness in gold was offset by gains in base metals. At 1900 IST, the most-active September contract of silver was flat at 84,770 rupees per kg on the MCX. The same-month contract on the COMEX was steady at $29.50 per oz.

The MCX Bulldex, an index that tracks the real-time performance of gold and silver futures on the MCX, was down 75 points at 17958 points. As of 1903 IST, the October and December contracts of gold recorded turnovers of 31.00 bln rupees and 1.90 bln rupees, respectively, on the MCX. At the same time, the September and December contracts of silver saw turnovers of 20.70 bln rupees and 6.85 bln rupees, respectively.

The spot gold-silver ratio, also known as the Mint ratio, was lower at 84.58, which indicates that gold underperformed silver. The ratio measures the ounces of silver required to buy an ounce of gold. The ratio was 84.75 on Wednesday.

Outlook for the rest of the session:

--MCX gold seen at 71,200–71,950 rupees per 10 gm

--COMEX gold seen at $2,490–$2,525 an oz

--MCX silver seen at 84,250-85,700 rupees per kg

--COMEX silver seen at $29.30-$29.80 an oz

End

US$1 = 83.95 rupees

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

Edited by Avishek Dutta

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