Informist, Wednesday, Aug 9, 2023
By Sandeep Sinha
MUMBAI – Futures contracts of GOLD were marginally lower on the Multi Commodity Exchange of India and the COMEX because of a subdued dollar ahead of the US consumer price index data on Thursday.
The dollar index, which measures the strength of the greenback against a basket of six major currencies, was down 0.1% at 102.02 due to profit-taking.
“Gold contracts continue to trade steady, hovering around their one-month lows as bond yields and the dollar held firm ahead of the release of US consumer price data that could build the case for or against further interest rates hikes,” said Manav Modi, analyst at Motilal Oswal Financial Services.
The downside in the precious metal was cushioned by dovish comments from US Federal Reserve officials. Federal Reserve Bank of Philadelphia President Patrick Harker on Tuesday said the US central bank may consider cutting interest rates in 2024, which boosted safe-haven demand.
Investors will also take cues from the outcome of the Reserve Bank of India’s Monetary Policy Committee meeting on Thursday.
Gold holdings with SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, remained steady at 903.69 tn. The fund has a market value of $55.94 bln.
The spot gold-silver ratio, also known as the mint ratio, was lower at 84.42, indicating that silver had outperformed gold. The ratio measures the ounces of silver required to buy an ounce of gold.
SILVER prices gained tracking firm cues from industrial metals and rising hopes for further policy support from the Chinese government following weak economic data.
At 1950 IST, MCX Bulldex, an index tracking the real-time performance of gold and silver futures on the MCX, was down 14 points, or 0.1%, at 15788.
The October and December gold contracts recorded turnovers of 16.34 bln rupees and 1.04 bln rupees, respectively. At 1950 IST, the September and December silver contracts saw turnovers of 20.44 bln rupees and 3.22 bln rupees, respectively.
The average traded price for the October gold contract on the domestic exchange was 59,256.79 rupees per 10 gm.
On the daily technical charts, the MCX October gold contract traded higher than the five-, 50- and 200-day simple moving averages but lower than the 20- and 100-day simple moving averages. The momentum oscillator, Relative Strength Index, was at 51.26, indicating a sideways trend in price.
At 1950 IST, following were the most-active contracts of bullion:
-October gold was down 0.1% at 59,200 rupees per 10 gm on MCX
-December gold was down 0.1% at $1,957.95 an ounce on COMEX
-September silver was up 0.4% at 70,463 rupees per kg on MCX
–September silver was up 0.3% at $22.85 an ounce on COMEX
Outlook for the rest of the session:
-MCX gold seen at 58,900–59,300 rupees per 10 gm
-COMEX gold seen at $1,950.0–$1,965.0 an ounce
-MCX silver seen at 69,800-71,500 rupees per kg
-COMEX silver seen at $22.60-$23.0 an ounce
End
US$1 = 82.82 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Rajeev Pai
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