Informist, Tuesday, Nov 28, 2023

By J Navya Sruthi

MUMBAI – Futures contracts of SILVER fell today on the Multi Commodity Exchange of India as investors booked profit after prices rose to more than a six-month high on Monday, tracking a rise on COMEX due to a weaker dollar. A weaker dollar makes commodities priced in the greenback cheaper for overseas buyers, pushing demand higher for such commodities.

Silver prices were also down tracking a fall in prices of industrial metals.  

Moreover, GOLD and silver prices have been on an uptrend in recent weeks due to optimism that the US Federal Reserve may not hike interest rates further. 

"Swaps traders are pricing in a roughly 40% chance the Federal Reserve will reduce borrowing costs as soon as May, boosting the allure for the non-yielding yellow metal," Kotak Securities said in a note.

"Dovish expectations regarding the Fed's stance favoured bullish traders, suggesting that any significant pullback in gold might be viewed as a buying opportunity and could be cushioned," Kedia Advisory said in a note.

Investors are waiting for the US consumer confidence index, speeches by several Federal Open Market Committee officials and European Central Bank President Christine Lagarde later in the day. Markets will also take cues from the revised US Jul-Sep GDP figure on Wednesday.

At 1652 IST, the following were the most-active contracts of bullion:

 -December gold was flat at 61,555 rupees per 10 gm on MCX

 -December gold was up 0.2% at $2,016 an ounce on COMEX

 -December silver was down 0.2% at 74,650 rupees per kg on MCX

 –December silver was up 0.1% at $24.70 an ounce on COMEX

 Outlook for the rest of the session:

 -MCX gold seen at 61,350-61,800 rupees per 10 gm

 -COMEX gold seen at $2,007-$2,023 an ounce

 -MCX silver seen at 73,800-75,300 rupees per kg

 -COMEX silver seen at $24.35-$25.00 an ounce

End

US$1 = 83.33 rupees

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

Edited by Ashish Shirke

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