Informist, Tuesday, Oct 31, 2023
By Sandeep Sinha
MUMBAI – Futures contracts of gold on the Multi Commodity Exchange of India were flat today, tracking COMEX, ahead of the US Federal Open Market Committee meeting outcome on Wednesday. Investors remained cautious as they also assessed geopolitical developments in the war between Israel and Hamas.
The yellow metal is on track to end the month with a gain, the second best since March, having risen over 7% on the domestic exchange and in the international market because of increased uncertainty and risk aversion. “The upswing was lent support by a shift in sentiment among speculative financial investors,” Commerzbank AG said in a report.
“Gold prices have reclaimed the $2,000 mark, rising almost 7% in October after investors fled to safe havens in the face of growing concern between Israel and Palestine. The ongoing conflict is having a significant influence on gold prices, which could increase once more if it turns into a larger regional conflict,” said Prithviraj Kothari, the managing director and chief executive officer at RiddiSiddhi Bullions Ltd.
“Gold price is likely to trade in a narrow range as traders await the outcome of a major two-day FOMC monetary policy meeting for hints about the future rate-hike path,” said Saumil Gandhi, a senior analyst – commodities, HDFC Securities, in a note.
On Monday, GOLD holdings with the SPDR Gold Trust, the world’s largest gold-backed exchange traded fund, fell by 2.31 tn to 859.49 tn. The fund has a market value of $55.18 bln.
The spot gold-silver ratio, also known as the mint ratio, was higher at 86.53, indicating that gold had outperformed silver. The ratio measures the ounces of silver required to buy an ounce of gold.
SILVER prices fell today due to profit booking and weakness in industrial metals. The sentiment was hurt by weak economic data from China.
At 1845 IST, MCX Bulldex, an index tracking the real-time performance of gold and silver futures on the MCX, was down by 29 points, or 0.2%, at 16095 points.
The December and February gold contracts recorded turnovers of 20.0 bln rupees and 1.04 bln rupees, respectively. At 1845 IST, the December and March silver contracts saw turnovers of 25.96 bln rupees and 1.44 bln rupees, respectively.
The average traded price of the December gold contract on the domestic exchange was 61,233.47 rupees per 10 gm.
On the technical charts, the MCX December gold contract traded higher than the five-, 20-, 50-, 100-, and 200-day simple and exponential moving averages. The momentum oscillator, Relative Strength Index, was at 75.08, suggesting a bullish bias in the price.
At 1845 IST, the following were the most-active contracts of bullion:
-December gold flat at 61,280 rupees per 10 gm on MCX
-December gold flat at $2,006.75 an ounce on COMEX
-December silver was down 0.6% at 72,340 rupees per kg on MCX
–December silver was down 0.6% at $23.27 an ounce on COMEX
Outlook for the rest of the session:
-MCX gold seen at 60,950–61,500 rupees per 10 gm
-COMEX gold seen at $2,000.0–$2,015.0 an ounce
-MCX silver seen at 71,700-73,300 rupees per kg
-COMEX silver seen at $23.15-$22.40 an ounce
End
US$1 = 83.25 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Akul Nishant Akhoury
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