More Stories

Informist, Thursday, Oct. 24, 2024

By Sandeep Sinha

MUMBAI – Futures contracts of gold rose on the Multi Commodity Exchange of India and COMEX Thursday because of weakness in the dollar, which makes commodities priced in the greenback cheaper for holders of other currencies. The positive sentiment was also supported by safe-haven demand amid uncertainty related to the upcoming US presidential election and geopolitical tensions in West Asia.

At 1832 IST, the dollar index, which measures the strength of the greenback against a basket of major currencies, was down 0.2% at 104.20. For further cues, investors await the US flash manufacturing purchasing managers' index and the flash services purchasing managers' index, due later in the day.

"Gold prices maintained a positive stance as the dollar remained muted near 104.40. After witnessing some selling pressure yesterday (Wednesday), which saw prices drop to INR 77,600, gold quickly rebounded to INR 78,350, posting a gain of 500 from yesterday's lows. This recovery highlights the strong underlying sentiment for gold, which continues to benefit from the broader macroeconomic environment, particularly as the US dollar stabilises," Jateen Trivedi, vice-president and research analyst at LKP Securities, said in a note.

At 1832 IST, the most-active December GOLD contract on the MCX was up 0.7% at INR 78,388 per 10 gm. The most-active December contract on COMEX was 0.8% higher at $2,751.50 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 75,000-INR 74,000 strike for the Nov. 26 gold contract.

However, further upside in the yellow metal was restricted by outflows in gold exchange-traded funds. On Wednesday, the gold holdings of SPDR Gold Trust, the world's largest gold-backed ETF, fell by 1.44 tonnes to 893.80 tonnes. The fund has a market value of $78.62 billion.

SILVER prices rose, taking cues from COMEX, and positive trends in gold and base metals. At 1832 IST, the most-active December contract of silver on the MCX was up 1.2% at INR 98,072 per kg. The same-month contract on COMEX was 1.2% higher at $34.25 per ounce.

The MCX Bulldex, an index that tracks the real-time performance of gold and silver futures on the MCX, was up 114 points at 19671 points. As of 1826 IST, the December and February gold contracts recorded turnovers of INR 22.05 billion and INR 1.80 billion, respectively, on the MCX. The December and March silver contracts saw turnovers of INR 27.79 billion and INR 1.37 billion, respectively.

The spot gold-silver ratio, also known as the Mint ratio, rose to 80.43, indicating that gold had outperformed silver. The ratio measures the ounces of silver required to buy an ounce of gold. The ratio was 80.37 on Wednesday.

Outlook for the rest of the session:

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

--COMEX gold seen at $2,704.00–$2,762.00 an ounce

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

--COMEX silver seen at $33.40-$34.80 an ounce

End

US$1 = INR 84.07

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

Edited by Tanima Banerjee

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.