More Stories

Informist, Friday, Jan. 24, 2025

 

--MCX Feb gold contract hits fresh all-time high of INR 79,998 per 10 gm

 

By Sandeep Sinha

 

MUMBAI – Futures contracts of gold traded on the Multi Commodity Exchange of India hit an all-time high of INR 79,998 per 10 grams, tracking those on COMEX, after US President Donald Trump's call for an immediate cut in interest rates by the Federal Reserve lifted safe-haven demand. The prospect of lower interest rates increases the allure of non-yielding assets such as gold.

 

The short-term trend for yellow metal turned positive as the price moved above the 20-day simple and exponential moving average on the daily chart. The momentum oscillator, Relative Strength Index, is at 67.18, suggesting further upside in the price. The index is used by traders to measure the recent change in prices to analyse overbought and oversold levels. 

 

US President Trump, while addressing the World Economic Forum at Davos, Switzerland, on Thursday said that energy prices are going down, and he would demand an 'immediate' cut in interest rates.

 

At 1000 IST, the most-active February gold contract on the MCX was up 0.4% at INR 79,903 per 10 gram. The February contract hit an all-time high of INR 79,998 earlier in the day. The most-active February gold contract on the COMEX was up 0.5% at $2,779.10 per ounce. 

 

"Gold held near the October record high, with traders seeking a haven against a potentially escalating trade war, which could lead to slower growth following Trump's latest tariff threats against China and the European Union," Ole Hansen, head of commodity strategy at Saxo Bank, said in a research note.

 

At 1000 IST, the dollar index, which measures the strength of the greenback against a basket of major currencies, was down 0.3% at 107.75 because of profit-taking. A weaker greenback makes dollar-denominated commodities cheaper for those holding other currencies, thus improving demand.

 

Earlier this week, gold derivatives moved into backwardation, a condition in which prices for cash delivery are higher than futures, indicating a short-term imbalance between supply and demand. "Market liquidity has been decreasing as banks have been closing out their borrowed Exchange Futures for Physical markets positions by selling spot and buying back February CME futures," Renisha Chainani, research head at Augmont Goldtech Pvt. Ltd., said. Gold has given a breakout from its symmetrical triangle, if prices stay above $2,750 an ounce or INR 79,000 per 10 grams, we can see further momentum towards $2,800 an ounce or INR 80,500 per gram, Chainani had said.   End

 

 

US$1 = INR 86.30

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

 

Edited by Tanima Banerjee

 

 

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. 2025. All rights reserved.