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Informist, Monday, Dec. 23, 2024

By Ashutosh Pati

MUMBAI – Futures contracts of gold fell on the Multi Commodity Exchange of India Monday, tracking a fall on COMEX because of a rebound in the dollar. Market sentiment was also weighed down by lower trading volumes amid the holiday season.

At 1923 IST, the Dollar Index, which measures the strength of the greenback against a basket of major currencies, was up 0.4% at 108.22. A stronger greenback makes dollar-denominated precious metals expensive for those holding other currencies, dulling demand.

"(It's a) quiet day with lower liquidity and limited data releases during the holiday season," Reuters quoted UBS analyst Giovanni Staunovo as saying.

At 1923 IST, the most-active February GOLD contract on the MCX was down 0.2% at INR 76,267 per 10 grams. The most-active February contract on COMEX was 0.5% lower at $2,632.90 per ounce.

However, further downside in gold prices was limited by softer-than-expected inflation data from the US. Data released Friday showed that the US Personal Consumption Expenditures Price Index rose 0.1% on month in November against expectations of a 0.2% rise. On a yearly basis, it was up 2.4%, up from October's 2.3% rise, but below the market's expectation of a 2.5% rise.

"Slightly lower-than-expected PCE price indices data led to a relief recovery in commodities including gold on Friday," Praveen Singh, associate vice-president, fundamental currencies and commodities, at Mirae Asset Sharekhan said in a note.

SILVER prices rose, taking cues from COMEX and tracking gains in industrial metals. At 1924 IST, the most-active March contract of silver on the MCX was up 0.9% at INR 89,139 per kg. The same-month contract on COMEX was up 0.8% at $30.21 per ounce.

Investors await the US Conference Board consumer confidence data due later in the day for further cues.

Outlook for the rest of the session:

--MCX gold seen at INR 75,216–INR 77,374 per 10 gm

--COMEX gold seen at $2,605.0–$2,642.0 an ounce

--MCX silver seen at INR 86,367-INR 91,583 per kg

--COMEX silver seen at $29.20-$30.10 an ounce

End

US$1 = INR 85.12

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

Edited by Rajeev Pai

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