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Informist, Tuesday, Aug 27, 2024

By Sandeep Sinha

MUMBAI – Futures contracts of gold on the Multi Commodity Exchange of India fell today, taking cues from the COMEX, because of profit-taking. Sentiment for the yellow metal was also hurt by weak physical demand as near-record high prices kept buyers away.

However, mild weakness in the dollar and increased geopolitical tensions in West Asia and due to the ongoing Russia-Ukraine war restricted further downside in bullion metals. At 1515 IST, the dollar index, which measures the strength of the greenback against a basket of major currencies, was down 0.1% at 100.76.

At 1515 IST, the most-active October gold contract on the MCX was down 0.2% at 71,885 rupees per 10 gm. The same-month contract on the COMEX was 0.4% lower at $2,522 per ounce. 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.

On Monday, gold holdings with SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, remained steady at 856.12 tn. The fund has a market value of $69.10 bln.

Investors await US Conference Board consumer confidence data later in the day. They will also look forward to the US Core Personal Consumption Expenditures Price Index data, the preferred inflation gauge of the US Federal Reserve, due on Friday.

SILVER prices fell, taking cues from the COMEX and weak trends in gold. At 1517 IST, the most active September contract for silver on the MCX was down 0.2% at 85,463 rupees per kg. The same-month contract on the COMEX was 0.3% lower at $29.90 per oz.

The MCX Bulldex, an index that tracks the real-time performance of gold and silver futures on the MCX, was just up 1 point at 18101 points. As of 1600 IST, the October and December contracts of gold recorded turnovers were 14.45 bln rupees and 1.44 bln rupees, respectively, on the MCX. The September and December contracts of silver saw turnovers of 10.38 bln rupees and 7.49 bln rupees, respectively.

Outlook for the rest of the session:

--MCX gold seen at 71,520–72,500 rupees per 10 gm

--COMEX gold seen at $2,510–$2,537 an oz

--MCX silver seen at 84,950-86,880 rupees per kg

--COMEX silver seen at $29.43-$30.26 an oz

End

US$1 = 83.92 rupees

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

Edited by Tanima Banerjee

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