Informist, Friday, Jun 9, 2023
By Sandeep Sinha
MUMBAI – Futures contracts of gold fell slightly today on the Multi Commodity Exchange of India and the COMEX as the dollar strengthened ahead of the US Federal Reserve's meeting next week.
The dollar index, which measures the strength of the greenback against a basket of major currencies, was up 0.1% at 103.41. A firm greenback makes commodities priced in the dollar expensive for holders of other currencies.
"The gold price was able to regain some ground yesterday (Thursday) after initial jobless claims in the US surprised significantly to the upside, thereby indicating a weakening of the US labour market," Thu Lan Nguyen, head of commodity research at Commerzbank said in a research note.
"Further volatility is looming for the gold price in the next few days given that the US inflation data will be published on Tuesday – a data heavyweight that could shift the interest rate expectations of the market significantly again."
Gold holdings with SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, remained steady at 934.65 tn. The fund has a market value of $59.06 bln.
The price of 22-carat gold in the Mumbai bullion market was 59,736 rupees per 10 gm plus 3% goods and service tax, while that of 24-carat gold was 59,976 rupees per 10 gm plus GST, and price of 18-carat gold was 54,938 rupees per 10 gm plus GST.
The spot gold-silver ratio, also known as the mint ratio, was lower at 80.90, indicating that silver had outperformed gold. The ratio measures the ounces of silver required to buy an ounce of gold.
MCX Bulldex, an index tracking the real-time performance of gold and silver futures on the MCX, was down 26 points, or 0.2%, at 16210 as of 1920 IST today.
The June and August gold contracts recorded turnovers of 16.87 bln rupees and 1.24 bln rupees, respectively. At 1920 IST, the July and September silver contracts saw turnovers of 17.27 bln rupees and 1.01 bln rupees, respectively.
On the technical charts, MCX August gold contract is trading lower than the 5-, 20-and 50-day simple moving averages but higher than the 100- and 200-day simple moving averages on the daily chart. The momentum oscillator Relative Strength Index is at 47.31 indicating a neutral trend in the price.
* At 1920 IST, following were the most active contracts of bullion:
-August gold was down 0.2% at 59,776 rupees per 10 gm on MCX
-August gold was down 0.3% at $1,973.40 an ounce on COMEX
-July silver was down 0.1% at 73,630 rupees per kg on MCX
–July silver was down 0.1% at $24.33 an ounce on COMEX
* Outlook for the rest of the session:
-MCX gold seen at 59,520–60,220 rupees per 10 gm
-COMEX gold seen at $1,952–$1,988 an ounce
-MCX silver seen at 73,100-74,400 rupees per kg
-COMEX silver seen at $24.14-$24.62 an ounce
End
US$1 = 82.46 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Tanima Banerjee
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