Informist, Friday, Dec 1, 2023
By J Navya Sruthi
MUMBAI – Futures contracts of GOLD were flat on the Multi Commodity Exchange of India and COMEX today because of a steady dollar ahead of the US Federal Reserve Chair Jerome Powell’s speech later today. The upside in the bullion metal was also restricted by outflows from gold exchange-traded funds.
However, the yellow metal is on track to end with gains for the third straight week, having risen 1.9% each on the MCX and COMEX this week so far.
“The upswing on the gold market has continued this week, the gold price almost regained its May yearly high. Any further upside potential is probably limited, however,” Commerzbank said in a note. “This is because the current expectations of Fed rate cuts of 50 basis points by mid-2024 are more likely to be disappointing,” the German bank said.
The dollar index, which measures the strength of the greenback against a basket of six major currencies, was flat at 103.42.
On Thursday, gold holdings with SPDR Gold Trust, the world’s largest gold-backed ETF, fell by 2.02 tn at 876.51 tn. The fund has a market value of $57.34 bln.
Investors will also take cues from the US purchasing managers’ index data to be released later in the day.
SILVER prices fell tracking weak cues from COMEX as traders increased their short positions.
At 1755 IST, the following were the most-active contracts of bullion:
-February gold was flat at 62,550 rupees per 10 gm on MCX
-February gold was flat at $2,038.10 an ounce on COMEX
-March silver was down 0.2% at 77,237 rupees per kg on MCX
–March silver was down 0.4% at $25.56 an ounce on COMEX
Outlook for the rest of the session:
-MCX gold seen at 62,250-62,850 rupees per 10 gm
-COMEX gold seen at $2,020-$2,060 an ounce
-MCX silver seen at 76,500-78,100 rupees per kg
-COMEX silver seen at $25.20-$25.80 an ounce
End
US$1 = 83.28 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Aditya Sakorkar
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