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Informist, Monday, Nov. 4, 2024

By Sandeep Sinha

MUMBAI – Futures contracts of gold fell on the Multi Commodity Exchange of India, despite steady cues from COMEX, because of profit-taking. The sentiment was also weighed down by gold exchange-traded funds witnessing outflows.

"Gold prices are trading slightly lower on profit-booking as traders now look for fresh cues on the demand front and are also keeping positions light ahead of the key events like US elections/ Federal Reserves’ policy decision and other data due from the global market," Pranav Mer, vice-president research commodity and currency at BlinkX and JM Financial said in a note.

On Friday, the gold holdings of SPDR Gold Trust, the world's largest gold-backed ETF, fell by 4.02 tonnes to 888.63 tonnes. The fund has a market value of $78.38 billion.

At 1750 IST, the most-active December GOLD contract on the MCX was down 0.5% at INR 78,470 per 10 gm. The most-active December contract on COMEX was flat at $2,750.0 per ounce. The highest call open interest for gold was at the INR 78,000-INR 81,000 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, the downside in the yellow metal was cushioned by weakness in the dollar, which makes commodities priced in the greenback cheaper for holders of other currencies. At 1750 IST, the dollar index, which measures the strength of the greenback against a basket of major currencies, was down 0.3% at 103.60.

On the technicals, Enrich Money expects some more downward movement in the upcoming sessions. If the gold breaks below the current support level of INR 78,250, it may fall towards INR 77,790 and INR 77,280 levels. However, if the price rises above the resistance level of INR 79,100, it could signal an upward trend, potentially leading to a rise to INR 79,500 and INR 79,780 levels.

SILVER prices fell, tracking the negative trend in gold and industrial metals. At 1745 IST, the most-active December contract of silver on the MCX was down 0.5% at INR 94,998 per kg. The same-month contract on the COMEX was 0.8% higher at $32.93 per ounce.

The MCX Bulldex, an index that tracks the real-time performance of gold and silver futures on the MCX, was down 49 points at 19534 points. As of 1747 IST, the December and February gold contracts recorded turnovers of INR 19.27 billion and INR 3.79 billion, respectively, on the MCX. The December and March silver contracts saw turnovers of INR 15.14 billion and INR 2.93 billion, respectively.

The spot gold-silver ratio, also known as the Mint ratio, fell to 83.46, indicating that gold had underperformed silver. The ratio measures the ounces of silver required to buy an ounce of gold. The ratio was 84.33 on Friday.

Outlook for the rest of the session:

--MCX gold seen at INR 77,347–INR 79,326 per 10 gm

--COMEX gold seen at $2,734.90–$2,783.40 an ounce

--MCX silver seen at INR 93,520-INR 96,543 per kg

--COMEX silver seen at $32.27-$33.55 an ounce

End

US$1 = INR 84.12

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

Edited by Tanima Banerjee

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