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Informist, Thursday, Oct. 10, 2024

By Sandeep Sinha

MUMBAI – Futures contracts of gold on the Multi Commodity Exchange of India and the COMEX rose marginally ahead of the US consumer price index data later Thursday. Investors are also awaiting the US initial jobless claims data for further cues on the next rate move by the Federal Reserve.

The positive sentiment in the yellow metal was also aided by safe-haven demand due to rising geopolitical tension on account of the conflict in West Asia. "Gold is expected to range-trade as traders closely monitor geopolitical developments," Praveen Singh, associate vice-president of fundamental currencies and commodities at Sharekhan by BNP Paribas, said in an email note.

At 1710 IST, the most active December GOLD contract on the MCX was up 0.1% at INR 74,980 per 10 gm. The most active December contract on COMEX was 0.1% higher at $2,628.8 per ounce. The highest call open interest for gold was at the INR 76,000-77,000 strike price, suggesting a bullish view, while the highest put open interest was at the INR 73,000 strike for the Nov. 26 gold contract.

Gold holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, remained unchanged for the third day at 876.26 tonnes. The fund has a market value of $73.51 billion.

SILVER prices rose, taking cues from COMEX, because of short-covering and the positive trend in gold. At 1725 IST, the most active December contract of silver on the MCX was up 0.3% at INR 89,100 per kg. The same-month contract on COMEX was 0.4% higher at $30.78 per ounce.

The MCX Bulldex, an index that tracks the real-time performance of gold and silver futures on the MCX, was up by 64 points at 18655 points. As of 1729 IST, the December and February gold contracts recorded turnovers of INR 13.53 billion and INR 1.18 billion, respectively, on the MCX. The December and March silver contracts saw turnovers of INR 9.23 billion and INR 469.80 million, respectively.

The spot gold-silver ratio, also known as the Mint ratio, fell slightly to 85.37, indicating that gold underperformed silver. The ratio measures the ounces of silver required to buy an ounce of gold. The ratio was 85.43 on Wednesday.

Outlook for the rest of the session:

--MCX gold seen at INR 74,700–INR 75,300 per 10 gm

--COMEX gold seen at $2,610.0–$2,650.0 an ounce

--MCX silver seen at INR 88,800-INR 90,000 per kg

--COMEX silver seen at $30.45-$31.20 an ounce

End

US$1 = INR 83.97

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

Edited by Saji George Titus

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