More Stories

Informist, Tuesday, Oct. 22, 2024

By Sandeep Sinha

MUMBAI – Futures contracts of gold traded near lifetime highs on the Multi Commodity Exchange of India and COMEX on Tuesday, supported by safe-haven demand as investors assessed geopolitical risks in West Asia and uncertainty related to the US presidential election as polls indicated the race was too close to call. The positive sentiment was further aided by inflows in gold exchange-traded funds.

"Gold prices have surged again, with buying interest in safe-haven assets such as bullion remaining strong as risky assets continue to underperform," said Jateen Trivedi, vice-president and research analyst at LKP Securities, in a note. As investors seek refuge in precious metals amid global economic uncertainties, geopolitical tensions, and concern about the performance of traditional risk assets, gold continues to breach fresh levels above INR 78,000 per 10 gm, Trivedi said.

On Monday, the gold holdings of SPDR Gold Trust, the world's largest gold-backed ETF, rose by 3.16 tonnes to 891.79 tonnes, the highest since Aug. 16, 2023. The fund has a market value of $78.44 billion.

At 1904 IST, the most-active December GOLD contract on the MCX was up 0.5% at INR 78,431 per 10 gm. The December contract hit an all-time high of INR 78,460 on Monday. The most-active December contract on COMEX was up 0.5% at $2,752.50 per ounce. The highest call open interest for gold was at the INR 78,000 strike price, suggesting a bullish view. The highest put open interest was at the INR 74,000 strike for the Nov. 26 gold contract.

SILVER prices touched a fresh lifetime high on the MCX, taking cues from COMEX and positive trends in gold and base metals. "With Diwali approaching and the sustained demand for precious metals, silver is expected to continue its robust performance, making it an attractive investment in the current market environment," Trivedi said. At 1910 IST, the most-active December contract of silver on the MCX was up 1.8% at INR 99,186 per kg. The December contract hit an all-time high of INR 99,360 intraday Tuesday. The same-month contract on COMEX was 1.9% higher at $34.73 per ounce.

The MCX Bulldex, an index that tracks the real-time performance of gold and silver futures on the MCX, was up 168 points at 19760 points. As of 1912 IST, the December and February gold contracts recorded turnovers of INR 26.77 billion and INR 1.92 billion, respectively, on the MCX. The December and March silver contracts saw turnovers of INR 32.42 billion and INR 1.99 billion, respectively.

The spot gold-silver ratio, also known as the Mint ratio, fell to 79.27, indicating that gold had underperformed silver. The ratio measures the ounces of silver required to buy an ounce of gold. The ratio was 80.37 on Monday.

Outlook for the rest of the session:

--MCX gold seen at INR 78,000–INR 78,800 per 10 gm

--COMEX gold seen at $2,725.00–$2,774.00 an ounce

--MCX silver seen at INR 97,800-INR 99,800 per kg

--COMEX silver seen at $33.80-$35.00 an ounce

End

US$1 = INR 84.07

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

Edited by Akul Nishant Akhoury

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2024. All rights reserved.