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Informist, Friday, Sep 27, 2024

By Sandeep Sinha

MUMBAI – Futures contracts of gold fell on the Multi Commodity Exchange of India and COMEX today because of profit booking at higher levels, analysts said. However, the yellow metal is on track for a third straight week of gains, having risen 1.6% on MCX and 1.7% on COMEX so far this week.

The downside in yellow metal was cushioned by a weaker dollar, which makes commodities priced in the greenback cheaper for holders of other currencies, boosting demand for precious metals. At 1850 IST, the dollar index, which measures the strength of the greenback against a basket of six major currencies, was down 0.4% at 100.19.

"Gold prices have pared some gains on profit booking, after better-than-expected US data lifted the dollar yesterday and as traders trimmed some bets on bigger rate cuts at Fed's next meeting. However, the bullion is likely to remain supported by safe-haven demand, buying among ETF investors, etc," Pranav Mer, vice-president research commodity and currency at BlinkX and JM Financial said in a note.

At 1852 IST, the most active October GOLD contract on the MCX was down 0.1% at 75,300 rupees per 10 gm. The most active December contract on COMEX was 0.1% lower at $2,692.3 per ounce. The highest call open interest for gold was at the 77,000-rupee strike price, suggesting a bullish view, while the highest put open interest was at the 73,000-rupee strike for the Nov 26 gold contract.

On Thursday, gold holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, remained steady at 877.12 tn. The fund has a market value of $75.1 bln.

SILVER prices rose, taking cues from the COMEX, and a weaker dollar. "Silver prices in the key London spot market breached a 12-year high of $32.50 an oz today. "The upward rally in silver prices is also supported by the possibility of increased industrial use along with the surging demand from the renewable energy sector," ING Economics said in a note. At 1900 IST, the most active December contract of silver on MCX was up 0.1% at 92,781 rupees per kg. The same-month contract on COMEX was 0.5% higher at $32.63 per oz.

The MCX Bulldex, an index that tracks the real-time performance of gold and silver futures on the MCX, was down just 11 points at 19000 points. As of 1900 IST, the October and December gold contracts recorded turnovers of 38.61 bln rupees and 23.70 bln rupees, respectively, on MCX. The December and March contracts of silver saw turnovers of 30.95 bln rupees and 1.27 bln rupees, respectively.

Outlook for the rest of the session:

--MCX gold seen at 74,900–75,550 rupees per 10 gm

--COMEX gold seen at $2,678.83–$2,710.03 an oz

--MCX silver seen at 91,000-93,800 rupees per kg

--COMEX silver seen at $31.90-$32.88 an oz

End

US$1 = 83.70 rupees

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

Edited by Deepshikha Bhardwaj

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