India Bullion
Gold tad up on Fed rate cut but firm dlr limits gain
This story was originally published at 21:49 IST on 19 September 2024
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By Sandeep Sinha
MUMBAI – Futures contracts of gold rose marginally on the Multi Commodity Exchange of India and COMEX as the interest rate cut by the US Federal Reserve was offset by a stronger dollar. The yellow metal price hit a fresh all-time high of $2,627.2 per oz on Wednesday after the US central bank cut the interest rate by 50 basis points.
The Federal Market Open Committee lowered the interest rate by 50 basis points to 4.75-5.00%. However, Fed Chair Jerome Powell indicated that there was no rush to ease monetary policy aggressively.
At 1947 IST, the dollar index, which measures the strength of the greenback against a basket of major currencies, was up 0.4% to 100.96. A stronger greenback makes gold prices expensive for holders of other currencies.
At 1948 IST, the most active October GOLD contract on MCX was up 0.1% at 73,110 rupees per 10 gm. The most active December contract on COMEX was 0.1 higher at $2,602.35 per oz.
Gold prices pared gains on profit booking, but the underlying trend still remains positive, and price may scale towards $2,700-$2,780 per oz, BlinkX said in a note.
SILVER prices rose on positive cues from COMEX, and firm a trend in industrial metals. At 1955 IST, the most active December contract of silver was up 1.3% at 89,397 rupees per kg. The same-month contract on COMEX was 1.6% higher at $31.19 per oz.
Outlook for the rest of the session:
--MCX gold seen at 73,700–74,000 rupees per 10 gm
--COMEX gold seen at $2,595.00–$2,625.50 an oz
--MCX silver seen at 88,500-90,600 rupees per kg
--COMEX silver seen at $30.90-$31.50 an oz
End
US$1 = 83.68 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Aditya Sakorkar
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