Informist, Monday, Jun 12, 2023
By Sandeep Sinha
MUMBAI – Futures contracts of gold were marginally higher on the Multi Commodity Exchange of India and the COMEX as the dollar was weak ahead of US consumer price index data on Tuesday.
The dollar index, which measures the strength of the greenback against a basket of major currencies, was down 0.1% at 103.48. A weaker greenback makes commodities priced in the dollar cheaper for holders of other currencies.
“Gold prices inched higher at the start of this week, amidst a steady dollar and US yields, as investors positioned for a data heavy week along with a series of major central bank policy meetings. Weaker than expected US Services PMI, factory orders and a surprising weekly jobless claims data, last week, supported the move in gold and silver prices,” said Manav Modi, analyst at Motilal Oswal Financial Services.
Consumer inflation is expected to be factored into the US Federal Reserve’s decision, given that its main goal in this rate hike cycle has been to bring down inflation, Modi said. While inflation is well below the near 40-year highs seen through 2022, it is still above the Fed’s 2% annual target, he said.
“The lack of major triggers and events scheduled for this Monday also kept the prices in a small trading band,” said Sriram Iyer, senior research analyst at Reliance Securities.
However, the upside in the yellow metal was restricted due to outflows from gold exchange-traded funds. Gold holdings with SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell by 2.89 tn to 931.76 tn. The fund has a market value of $58.69 bln.
The price of 22-carat gold in the Mumbai bullion market was 59,682 rupees per 10 gm plus 3% goods and service tax, that of 24-carat gold was 59,921 rupees per 10 gm plus GST, and price of 18-carat gold was 54,887 rupees per 10 gm plus GST.
The spot gold-silver ratio, also known as the mint ratio, was higher at 81.51, indicating that gold had outperformed silver. 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 31 points, or 0.2%, at 16196 as of 1830 IST.
The June and August gold contracts recorded turnovers of 13.06 bln rupees and 6.66 bln rupees, respectively. At 1830 IST, the July and September silver contracts saw turnovers of 14.23 bln rupees and 8.09 bln rupees, respectively.
On the technical charts, MCX August gold contract is trading higher than the 5-, 20-, 100-and 200-day simple moving averages but lower than the 50-day simple moving averages on the daily chart. The momentum oscillator Relative Strength Index is at 49.04, which suggests a neutral trend in the price.
* At 1830 IST, following were the most active contracts of bullion:
-August gold was up 0.1% at 59,850 rupees per 10 gm on MCX
-August gold was up 0.1% at $1,978.00 an ounce on COMEX
-July silver was down 0.7% at 73,257 rupees per kg on MCX
–July silver was down 1% at $24.16 an ounce on COMEX
* Outlook for the rest of the session:
-MCX gold seen at 59,500–60,100 rupees per 10 gm
-COMEX gold seen at $1,955–$1,985 an ounce
-MCX silver seen at 72,500-74,800 rupees per kg
-COMEX silver seen at $23.80-$24.60 an ounce
End
US$1 = 82.43 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 [email protected]
© Informist Media Pvt. Ltd. 2023. All rights reserved.
Source: Cogencis
