Informist, Monday, Nov 6, 2023
By Sandeep Sinha
MUMBAI – Futures contracts of GOLD on the Multi Commodity Exchange of India and COMEX fell today as haven demand eased amid the view that the war between Israel and Palestine-based Hamas has remained contained.
However, the downside in the yellow metal was restricted due to weakness in the dollar and inflows into gold exchange-traded funds.
The dollar index, which measures the strength of the greenback against a basket of six major currencies, was down 0.1% at 105.05.
On Friday, gold holdings with SPDR Gold Trust, the world’s largest gold-backed ETF, rose by 1.73 tn to 863.24 tn. The fund has a market value of $55.33 bln.
“Gold is seen range-bound as $2,010 per ounce has become a stiff resistance for the metal. In the absence of conflict escalation, the metal may correct lower, though traders continue to buy the dips into $1,970s per ounce. Next major resistance is at $2,025 and support is at $1962-$1945,” said Praveen Singh, associate vice-president, fundamental currencies and commodities at Sharekhan by BNP Paribas.
The spot gold-silver ratio, also known as the mint ratio, was lower at 85.75, indicating that silver had outperformed gold. The ratio measures the ounces of silver required to buy an ounce of gold.
SILVER prices were flat as weak cues from gold were offset by the strength in industrial metals.
At 1955 IST, the MCX Bulldex, an index tracking the real-time performance of gold and silver futures on the MCX, was down just 12 points, or 0.1%, at 16035.
The December and February gold contracts recorded turnovers of 14.87 bln rupees and 2.16 bln rupees, respectively. At 1955 IST, the December and March silver contracts saw turnovers of 15.56 bln rupees and 743.23 mln rupees, respectively.
The average traded price of the December gold contract on the domestic exchange was 60,853.04 rupees per 10 gm.
On the technical charts, the MCX December gold contract traded higher than the 20-, 50-, 100-, and 200-day simple and exponential moving averages, but lower than the five-day simple and exponential moving averages. The momentum oscillator, Relative Strength Index, was at 65.5, indicating further upside in the price.
At 1955 IST, the following were the most active contracts of bullion:
-December gold was down 0.2% at 60,911 rupees per 10 gm on MCX
-December gold was down 0.3% at $1,993.55 an ounce on COMEX
-December silver was flat at 72,258 rupees per kg on MCX
–December silver was flat at $23.26 an ounce on COMEX
Outlook for the rest of the session:
-MCX gold seen at 60,500–61,300 rupees per 10 gm
-COMEX gold seen at $1,980.0–$2,004.0 an ounce
-MCX silver seen at 71,500-73,100 rupees per kg
-COMEX silver seen at $23.15-$23.35 an ounce
End
US$1 = 83.22 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Avishek Dutta
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