Informist, Wednesday, Feb 7, 2024
By Sandeep Sinha
MUMBAI – Futures contracts of GOLD fell on the Multi Commodity Exchange of India and the COMEX today because of an outflow in gold exchange-traded funds. On Tuesday, gold holdings with SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell by 4.04 tn to 847.69 tn. The fund has a market value of $55.32 bln.
"Market's expectations of an imminent rate cut by the Fed has been in a state of flux following strong economic data," Daniel Hynes, senior commodities strategist at ANZ Research, said in a note. Expectations of higher interest rates reduce appeal of non-yielding assets such as gold.
Investors look forward to Federal Open Market Committee member Thomas Barkin and Federal Reserve Bank of Boston President Susan Collins' speech later today for further cues.
The spot gold-silver ratio, also known as the Mint Ratio, was higher at 91.27 to 1, which indicates that silver has underperformed gold. The ratio measures the ounces of silver required to buy an ounce of gold.
SILVER prices fell due to weak demand prospects. Also, weakness in industrial metals and bullion weigh on sentiment.
MCX Bulldex, an index tracking the real-time performance of gold and silver futures on the MCX, was down 50 points at 16012 points.
At 1605 IST, the April and June gold contracts recorded turnovers of 9.49 bln rupees and 879.30 mln rupees, respectively. At the same time, the March and May silver contracts saw turnovers of 8.15 bln rupees and 1.03 bln rupees, respectively.
* At 1800 IST, the following were the most-active contracts of bullion:
--April gold was down 0.2% at 62,426 rupees per 10 gm on MCX
--April gold was down 0.2% at $2,048.30 an ounce on COMEX
--March silver was down 0.5% at 70,220 rupees per kg on MCX
–-March silver was down 0.5% at $22.58 an ounce on COMEX
* Outlook for the rest of the session:
--MCX gold seen at 62,220–62,800 rupees per 10 gm
--COMEX gold seen at $2,034.0–$2,074.0 an ounce
--MCX silver seen at 69,700-71,330 rupees per kg
--COMEX silver seen at $22.30-$23.0 an ounce
End
US$1 = 82.97 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Tanima Banerjee
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