Informist, Tuesday, Sep 26, 2023
By Sandeep Sinha
MUMBAI – Futures contracts of gold fell on the Multi Commodity Exchange of India and COMEX today because of outflow from exchange-traded funds and hawkish comments by a US Federal Reserve official.
On Monday, GOLD holdings with SPDR Gold Trust, the world's largest gold-backed ETF, fell by 0.57 tn to 876.52 tn. The fund has a market value of $54.23 bln.
Federal Reserve Bank of Chicago President Austan Goolsbee told CNBC Monday that, "interest rate may have to stay higher for longer than markets had expected."
"Gold price may well make a renewed bid for the $1,900 per troy ounce mark if inflation fears increase in response to the recent sharp rise in oil and gasoline prices again and if at the same time the US economy continues to perform fairly robustly for now," said Thu Lan Nguyen, commodity analyst at Commerzbank, in a note.
The dollar index, which measures the strength of the greenback against a basket of major currencies, was flat at 105.92.
Investors will take fresh cues from US Conference Board consumer confidence and new homes sales data later in the day.
The spot gold-silver ratio, also known as the mint ratio, was higher at 82.98, indicating that gold had outperformed silver. The ratio measures the ounces of silver required to buy an ounce of gold.
SILVER fell due to concerns about weak industrial demand and muted cues from gold.
At 1830 IST, MCX Bulldex, an index tracking the real-time performance of gold and silver futures on the MCX, was down 43 points, or 0.3%, at 15680 points.
The October and December gold contracts recorded turnovers of 19.60 bln rupees and 9.99 bln rupees, respectively. At 1830 IST, the September and December silver contracts saw turnovers of 17.66 bln rupees and 514.47 mln rupees, respectively.
Traders raised their bearish positions in the most-active December gold futures by 770 lots to 12,040 lots. Market players increased their bearish positions in the MCX December silver contract by 837 lots.
The average traded price of the October gold contract on the domestic exchange was 59,121.06 rupees per 10 gm.
On the technical charts, the MCX October gold contract traded lower than the five-, 20-, 50- and 100-day simple moving averages, but higher than the 200-day simple moving average. The momentum oscillator, Relative Strength Index, was at 42.22, suggesting further downtrend in prices.
At 1840 IST, following were the most-active contracts of bullion:
-October gold was down 0.2% at 58,570 rupees per 10 gm on MCX
-December gold was down 0.5% at $1,927.65 an ounce on COMEX
-December silver was down 0.5% at 71,806 rupees per kg on MCX
–December silver was down 0.7% at $23.22 an ounce on COMEX
Outlook for the rest of the session:
-MCX gold seen at 58,400–59,000 rupees per 10 gm
-COMEX gold seen at $1,915.0–$1,940.0 an ounce
-MCX silver seen at 70,800-73,400 rupees per kg
-COMEX silver seen at $23.05-$23.38 an ounce
End
US$1 = 83.23 rupees
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. 2023. All rights reserved.
