Informist, Friday, May 5, 2023
By Sandeep Sinha
MUMBAI – After touching lifetime highs on Thursday, gold contracts on the Multi Commodity Exchange of India and COMEX fell today because of profit-booking and a rebound in US banking stocks.
Global demand for gold fell 13% on year to 1,081 tn in Jan-Mar due to weak demand from India, a fall in global electronic sales, and outflows from exchange-traded funds, the World Gold Council said in its Gold Demand Trends report released today.
"Downside in gold remain capped as weaker dollar, hopes of a pause in the US Fed's interest rate hike cycle and banking worries boosted the safe-haven appeal for the metal ahead of the key nonfarm payrolls tonight," said Sriram Iyer, senior research analyst at Reliance Securities.
"We continue to see downside risks because we do not share the market's expectation of an interest rate turnaround by the Fed before this year is out," Thu Lan Nguyen, head of commodity research at Commerzbank, said in a research note.
The spot gold-silver ratio was down at 78.69, indicating that silver outperformed silver. The ratio measures the number of silver ounces required to buy an ounce of gold.
Gold holdings with SPDR Gold Trust, the world's largest gold-backed exchange traded fund, remained steady at 1.74 tn. The fund has a market value of $61.11 bln.
MCX Bulldex, an index tracking the real-time performance of gold and silver futures on the MCX, was down 41 points, or 0.2%, at 16772 as of 1635 IST. As of 1635 IST, the June and August gold contracts recorded turnovers of 12.63 bln rupees and 724.65 mln rupees, respectively. At the same time, the July and September silver contracts saw a turnover of 10.87 bln rupees and 292.15 mln rupees, respectively.
* At 1635 IST, the most active contracts of bullion were:
--June gold was down 0.3% at 61,281 rupees per 10 gm on MCX
--June gold was down 0.4% at $2,047.05 an ounce on COMEX
--July silver was down 0.1% at 77,971 rupees per kg on MCX
–-July silver was down 0.1% at $26.21 an ounce on COMEX
* Outlook for the rest of the session:
--MCX gold seen at 61,068–61,756 rupees per 10 gm
--COMEX gold seen at $2,029–$2,058 an ounce
--MCX silver seen at 77,592-78,460 rupees per kg
--COMEX silver seen at $25.70-$26.25 an ounce
End
US$1 = 81.80 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Avishek Dutta
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