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Informist, Monday, Feb. 10, 2025

By Sandeep Sinha

MUMBAI – Gold contracts on the Multi Commodity Exchange of India and COMEX touched new lifetime highs on Monday as depleting stocks at the London Bullion Market Association's vaults and US-China trade tension boosted the appeal for safe-haven assets. Fresh flows into gold-exchange traded funds also lifted sentiment towards the yellow metal.

"The potential of gold also getting caught up in the tit-for-tat tariffs is causing a dislocation in the physical market. Gold in the Bank of England vault is trading at a discount to the wider market. This has seen weeklong queues to withdraw the metal," Daniel Hynes, senior commodity strategist at ANZ Research, said in a note.

The latest vault data from London Bullion Market Association on Friday showed gold stocks fell by1.7% on month to 8,535 tonnes in January. The value of gold held was $771.6 billion, equating to about 682,772 gold bars, it said.

Gold stocks at COMEX warehouses have risen to 1,076.04 tonnes as of Feb 6 from 681.44 tonnes as of Dec. 31.

On Friday, gold holdings with the SPDR Gold Trust, the world's largest gold-backed ETF, rose by 4.31 tonnes to 868.50 tonnes. The fund has a market value of $80.24 billion. On the National Stock Exchange, the total value of gold ETFs traded on Monday was INR 3.81 billion, up from INR 2.85 billion on Friday.

At 1835 IST, the most active April GOLD contract on the MCX was up 1.1% at INR 85,794 per 10 grams, after hitting fresh lifetime high of INR 85,880 per 10 gm. The most active April gold contract on COMEX was up 1.5% at $2,931.3 per ounce. The contract hit a new lifetime high of $2,934.1 per ounce earlier Monday. The highest call open interest was at INR 86,000-INR 88,000 strike prices, indicating a bullish view. The highest put open interest was at INR 82,000-INR 80,000 strike for the Feb. 28 contract.

Investors will track US Federal Reserve Chairman Jerome Powell's semiannual testimony later this week for further insights into future monetary policy.

SILVER contracts traded higher, taking cues from COMEX, and a firm trend in gold. At 1835 IST, the most-active March contract on the MCX was up 0.4% at INR 95,745 per kilogram. The same-month contract on the COMEX was 0.7% higher at $32.66 per ounce. On the options front, the highest call open interest was at the INR 100,000 strike price. The highest put open interest was at INR 90,000 strike for the Feb. 24 expiry contract.

The MCX Bulldex, an index that tracks the real-time performance of gold and silver futures on the MCX, was up 129 points at 20458 points. The April and June gold contracts recorded turnovers of INR 36.94 billion and INR 2.01 billion, respectively. The March and May silver contracts saw turnover of INR 14.0 billion and INR 2.82 billion, respectively.

The spot gold-silver ratio, also known as the Mint ratio, rose to 90.14 on Monday, indicating that gold outperformed silver. The ratio measures the ounces of silver required to buy an ounce of gold. The ratio was at 89.94 on Friday.

Outlook for the rest of the session:

--MCX gold seen at INR 85,134–INR 86,116 per 10 gm

--COMEX gold seen at $2,890.93–$2,940.27 an ounce

--MCX silver seen at INR 94,943-INR 96,498 per kg

--COMEX silver seen at $32.51-$33.85 an ounce

End

US$1 = INR 87.48

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

Edited by Avishek Dutta

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