Informist, Friday, May 26, 2023
By Sandeep Sinha
MUMBAI – Futures contracts of gold rose today on the Multi Commodity Exchange of India and COMEX because of a fall in 10-year Treasury yields and the dollar index as traders assessed the progress of the US debt ceiling talks.
The dollar index, which measures the strength in the greenback against a basket of major currencies, was down 0.3% at 103.92 today due to profit-booking. A weaker dollar makes precious metals priced in the greenback cheaper for holders of other currencies.
However, the yellow metal is on track to end the week with a loss, having fallen 1.4% on MCX and 1.5% on COMEX, respectively so far.
Investors will take further cues from US core personal consumer price index, which is the Federal Reserve’s preferred inflation gauge, due later today.
“We see only limited further downside potential for gold because we believe that the Fed has concluded its rate-hike cycle,” said Carsten Fritsch, commodity analyst at Commerzbank in a report.
Gold holdings with the SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, remained steady for a second straight day at 941.29 tn. The fund has a market value of $58.94 bln.
The spot gold-silver ratio, also known as the mint ratio, was lower at 84.07, indicating that silver has 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 up 69 points, or 0.4%, at 16069 points as of 1745 IST.
The June and August gold contracts recorded turnovers of 17.85 bln rupees and 7.16 bln rupees, respectively. At 1745 IST, the July and September silver contracts saw turnovers of 16.04 bln rupees and 666.87 mln rupees, respectively.
* At 1745 IST, following were the most active contracts of bullion:
-June gold was up 0.3% at 59,616 rupees per 10 gm on MCX
-June gold was up 0.5% at $1,953.35 an ounce on COMEX
-July silver was up 1.4% at 71,707 rupees per kg on MCX
-July silver was up 1.9% at $23.35 an ounce on COMEX
* Outlook for the rest of the session:
-MCX gold seen at 59,000–60,000 rupees per 10 gm
-COMEX gold seen at $1,925–$1,975 an ounce
-MCX silver seen at 69,700-72,000 rupees per kg
-COMEX silver seen at $22.75-$23.55 an ounce
End
US$1 = 82.57 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Tanima Banerjee
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