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Informist, Tuesday, Oct. 1, 2024

MUMBAI – Futures contracts of gold rose on the Multi Commodity Exchange of India and COMEX today because heightened geopolitical tensions in West Asia boosted safe-haven demand. The Israeli military launched a ground invasion of Lebanon that began early Tuesday, which raised the possibility of the conflict in the volatile region widening.

At 1830 IST, the most-active December GOLD contract on the MCX was up 0.5% at INR 76,013 per 10 gm. The most active December contract on COMEX was 0.5% higher at $2,673.5 per ounce. The highest call open interest for gold was at INR 77,000 strike price, suggesting a bullish view, while the highest put open interest was at INR 73,000 strike for the Nov. 26 gold contract.

"Market participants are closely watching this data-packed week, with the prime focus on Non-Farm Payrolls and Unemployment data scheduled for Friday. The overall trend remains bullish, with support placed at INR 75,000 and resistance at INR 76,250-76,400 in MCX. Any significant deviation in the data could impact gold's short-term movement," Jateen Trivedi, vice-president and research analyst at LKP Securities, said in an email note.

However, the upside in the bullion metal was restricted by a firm dollar, which makes commodities priced in the greenback expensive for holders of other currencies. At 1840 IST, the dollar index, which measures the strength of the greenback against a basket of six major currencies, was up 0.5% at 101.21.

"There are currently several indications that the gold rally has ended for the time being and that a consolidation phase is now imminent," Carsten Fritsch, commodity analyst at Commerzbank, said in a note to clients.

SILVER prices rose, taking cues from COMEX and positive trends in gold and industrial metals. At 1855 IST, the most active December contract of silver on the MCX was up 0.9% at INR 91,565 per kg. The same-month contract on COMEX was 1.1% higher at $31.8 per ounce.

The MCX Bulldex, an index that tracks the real-time performance of gold and silver futures on the MCX, was up 82 points at 18880 points. As of 1855 IST, the December and February gold contracts recorded turnovers of INR 19.25 billion and INR 1.77 billion, respectively, on the MCX. The December and March contracts of silver saw turnovers of INR 18.42 billion and INR 963.1 million, respectively.

Outlook for the rest of the session:

--MCX gold seen at INR 75,650–INR 76,350 per 10 gm

--COMEX gold seen at $2,639.17–$2,680.67 an ounce

--MCX silver seen at INR 90,400-INR 92,200 per kg

--COMEX silver seen at $31.00-$31.99 an ounce

End

US$1 = INR 83.82

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

Edited by Rajeev Pai

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