India Bullion
Rising dollar pushes gold lower; US jobless claims eyed
This story was originally published at 18:30 IST on 14 November 2024
Register to read our real-time news.Informist, Thursday, Nov. 14, 2024
By Sandeep Sinha
MUMBAI – Tracking a fall on the COMEX, futures contracts of gold fell on the Multi Commodity Exchange of India Thursday as the dollar surged to a fresh 52-week high, reducing bullion's safe-haven appeal. Continued outflows from gold exchange-traded funds also weighed on prices.
"Gold continues to trade lower, weighed by a higher dollar and elevated treasury yield after US CPI data showed inflation remains sticky above the Fed's 2% target. Also in focus remains the US Producer Price Index (PPI) and weekly jobless claims are due later today, with retail sales data on Friday and remarks from Fed Chair Jerome Powell and other central bank officials," Pranav Mer, vice-president-research, commodity and currency, BlinkX and JM Financial, said in an email note.
Analysts polled by Dow Jones had estimated the jobless claims to come in at 220,000, down by 1,000 from last week.
At 1555 IST, the dollar index, which measures the strength of the greenback against a basket of major currencies, was up 0.4% at 106.92. It hit a fresh year high of 106.95 intraday on Thursday. A stronger greenback makes dollar-denominated precious commodities more expensive for those holding other currencies, depressing demand.
On Wednesday, gold holdings with the SPDR Gold Trust, the world's largest gold-backed ETF, fell for the eighth successive day by 2.01 tonnes to 868.52 tonnes. The fund has seen an outflow of 24.11 tonnes since the start of the month and has a market value of $72.53 billion. On the National Stock Exchange, the total value of gold ETFs traded was INR 1.68 billion, down from INR 1.97 billion on Wednesday.
At 1555 IST, the most-active December GOLD contract on the MCX was down 1.4% at INR 73,455 per 10 gm. The most-active December contract on COMEX was 1.6% lower at $2,546.40 per ounce. The highest call open interest for gold was at INR 76,000-77,000 strike prices, suggesting a bullish view. The highest put open interest was at INR 74,000-73,000 strikes for the Nov. 26 gold contract.
On the technical front, Reliance Securities said the gold chart is continuously in a downtrend as it is making lower highs and lower lows. The brokerage has recommended going short on gold in the evening session.
SILVER prices fell taking cues from COMEX and weak trend in gold and industrial metals. At 1555 IST, the most-active December contract of silver on the MCX was down 2.5% at INR 87,036 per kg. The same-month contract on COMEX was 2.7% lower at $29.84 per ounce.
On the options front, the highest call open interest for silver was at INR 90,000-100,000 strike prices. The highest put open interest was at INR 90,000-85,000 strikes for the Nov. 26 silver expiry.
The MCX Bulldex, an index that tracks the real-time performance of gold and silver futures on the MCX, was down 329 points at 18200 points. As of 1555 IST, the December and February gold contracts recorded turnovers of INR 42.11 billion and INR 7.20 billion, respectively, on the MCX. The December and March silver contracts saw turnovers of INR 27.02 billion and INR 9.29 billion, respectively.
The spot gold-silver ratio, also known as the Mint ratio, rose to 85.40, indicating that silver had underperformed gold. The ratio measures the ounces of silver required to buy an ounce of gold. The ratio was 84.27 on Wednesday.
Outlook for the rest of the session:
--MCX gold seen at INR 73,130–75,000 per 10 gm
--COMEX gold seen at $2,506.10–$2,608.80 an ounce
--MCX silver seen at INR 86,800-90,200 per kg
--COMEX silver seen at $29.70-$30.95 an ounce
End
US$1 = INR 84.40
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Ashish Shirke
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.
To read more please subscribe
Share this Story:
