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Informist, Friday, Aug 30, 2024

By Sayantan Sarkar

MUMBAI – Futures contracts of GOLD on the Multi Commodity Exchange of India and COMEX were in the red ahead of the release of key economic data from the US later today. 

Traders await US inflation data in the form of the US Personal Consumption Expenditures Price Index for July. The market is also likely to monitor the release of the Chicago purchasing managers' index, which determines the economic health of the manufacturing sector. 

"The core PCE Price Index, the US Federal Reserve’s preferred inflation measure, is the most relevant economic data release this week, and will help determine the Fed interest-rate cut prospects beyond September," fxstreet.com said in a report, adding that the data could trigger a range breakout in the yellow metal prices on COMEX. The data will be closely monitored, especially after Thursday's positive GDP data from the US for the June quarter. 

"The US economy grew last quarter at an annual pace of 3%, fuelled by strong consumer spending and business investment, an upgrade to the government’s initial reading of 2.8%. Markets price in only 34% odds of a 50 basis point cut next month, down from 38% a day earlier, according to the CME Group's FedWatch Tool," fxstreet.com said. 

At 1708 IST, the most-active October gold contract on the MCX was down 0.2% at 72,069 rupees per 10 gm. The most-active December contract on the COMEX was 0.3% lower at $2,534.1 per ounce. 

SILVER prices fell on the MCX, taking cues from the COMEX and negative trends in gold. At 1715 IST, the most active December contract for silver on the MCX was down 0.2% at 86,900 rupees per kg. The December-month contract on COMEX was 0.2% lower at $29.93 per oz.

The MCX Bulldex, an index that tracks the real-time performance of gold and silver futures on the MCX, was down 10 points at 18071 points. 

Outlook for the rest of the session:

--MCX gold seen at 71,700–72,350 rupees per 10 gm

--COMEX gold seen at $2,505–$2,535 an oz

--MCX silver seen at 86,000-87,700 rupees per kg

--COMEX silver seen at $29.15-$30.91 an oz

End

US$1 = 83.86 rupees

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

Edited by Rajeev Pai

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