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Informist, Wednesday, Sep 11, 2024

By Sayantan Sarkar

NEW DELHI – Futures contracts of gold and silver rose today on the Multi Commodity Exchange of India tracking contracts on the COMEX as the dollar fell against a basket of major currencies. A weaker dollar makes commodities priced in the greenback cheaper for overseas buyers.

Investors are also waiting for US CPI inflation for August that will be detailed later in the day. The market is likely to take cues from the data for the quantum of likely interest rate cut by the US Federal Reserve in its meeting later this month. "Consumer price index data--one of the final major economic releases ahead of next week's Federal Open Market Committee meeting--is expected to show a further cooling in U.S. inflation," Dow Jones Wire said in a note.

"The US Dollar struggles to capitalize on its gains registered over the past three days and retreats from the vicinity of the monthly peak amid dovish Federal Reserve expectations," fxstreet.com said in a report. "This, in turn, is seen as a key factor driving flows towards the non-yielding yellow metal," it said. 

According to the CME FedWatch Tool, the markets are currently pricing in a 67% chance of a 25-basis-point rate cut at the next Federal Open Market Committee policy meeting on Sep 17-18.

At 1724 IST, the most-active October GOLD contract on the MCX was at 72,110 rupees per 10 gm, up 0.3% from the previous close. The most-active December contract on the COMEX was 0.3% higher at $2,551.1 per ounce.

The most-active December contract of SILVER on the MCX was at 84,938 rupees per kg, up 1.5% from the previous close. The same-month contract on the COMEX was 2.0% higher at $29.168 per ounce.

Outlook for the rest of the session:

--MCX gold seen at 71,600-72,500 rupees per 10 gm

--COMEX gold seen at $2,487.4-$2,557.5 an ounce

--MCX silver seen at 83,786-85,924 rupees per kg

--COMEX silver seen at $28.30-$29.81 an ounce

End

US$1 = 83.97 rupees

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

Edited by Ashish Shirke

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