More Stories

Informist, Tuesday, Oct. 29, 2024

By Sandeep Sinha

MUMBAI – Futures contracts of gold on the Multi Commodity Exchange of India rose, taking cues from the COMEX, because of fresh inflows in exchange-traded funds. The positive sentiment was further lifted by festival demand in India, the second-biggest consumer.

On Monday, the gold holdings of SPDR Gold Trust, the world's largest gold-backed ETF, rose 1.72 tonnes to 891.50 tonnes. The fund has a market value of $78.56 billion.

"Gold prices in MCX remained positive, rising above INR 78,750, with Dhanteras adding enthusiasm for long positions. More buying occurred on this auspicious day, pushing prices up by over INR 200 on MCX and trading above INR 80,000 in the physical jewelry market," Jateen Trivedi, vice-president and research analyst at LKP Securities, said in a note. "Upcoming US economic data, including nonfarm payrolls and unemployment reports, may influence gold's movements, with major support at INR 77,000 and immediate resistance at INR 81,500."

At 1800 IST, the most-active December GOLD contract on the MCX was up 0.2% at INR 78,755 per 10 gm. The most-active December contract on the COMEX was 0.3% higher at $2,764.40 per ounce. The highest call open interest for gold was at the INR 78,000-80,000 strike price, suggesting a bullish view. The highest put open interest was at the INR 75,000-74,000 strike for the Nov. 26 gold contract.

For further cues, investors will look at US job openings and labour turnover survey data and Conference Board consumer confidence data later Tuesday.

However, the further rise in yellow metal was limited due to the strength in the dollar, which makes commodities priced in the greenback expensive for holders of other currencies. At 1800 IST, the dollar index, which measures the strength of the greenback against a basket of major currencies, was up 0.2% at 104.46.

SILVER prices rose, taking cues from the COMEX, and positive trends in gold and base metals. At 1800 IST, the most-active December contract of silver on the MCX was up 1.1% at INR 98,494 per kg. The same-month contract on COMEX was 1.1% higher at $34.38 per ounce.

The MCX Bulldex, an index that tracks the real-time performance of gold and silver futures on the MCX, was up 143 points at 19730 points. As of 1800 IST, the December and February gold contracts recorded turnovers of INR 19.90 billion and INR 2.32 billion, respectively, on the MCX. The December and March silver contracts saw turnovers of INR 23.70 billion and INR 1.79 billion, respectively.

The spot gold-silver ratio, also known as the Mint ratio, fell to 80.43, indicating that gold had underperformed silver. The ratio measures the ounces of silver required to buy an ounce of gold. The ratio was 81.49 on Monday.

Outlook for the rest of the session:

--MCX gold seen at INR 78,380–INR 79,200 per 10 gm

--COMEX gold seen at $2,730.00–$2,780.00 an ounce

--MCX silver seen at INR 97,800-INR 99,480 per kg

--COMEX silver seen at $33.70-$34.50 an ounce

End

US$1 = INR 84.08

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

Edited by Manisha Baxla

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.