Informist, Friday, Dec 29, 2023
By J. Navya Sruthi
MUMBAI – Futures contracts of GOLD on the Multi Commodity Exchange of India were in the red on the last trading day of 2023, tracking those on the COMEX, because of profit booking amid thin volume. However, the yellow metal was the best performing non-agricultural commodity this year, rising 14.9% on the MCX and 13.6% on COMEX.
Analysts expect the trade volumes to be thin for the rest of the week due to the holiday season in international markets.
“Gold prices traded in a tight range after a sharp surge seen in earlier sessions, amidst rising optimism over early interest rate cuts by the Federal Reserve drove a strong melt-up in prices through December,” Motilal Oswal Financial services said in a note.
The positive US unemployment claims data, released on Thursday, restricted the downside in gold prices. Data showed that the number of Americans filing for unemployment benefits rose by 12,000 to 218,000 during the previous week, above market expectations of 210,000. This suggested some softening in the US labour market before the end of the year, Kotak Securities said in a note.
Bets for interest rate cuts from the US Federal Reserve have firmed following cooler inflation data, with traders now pricing in an 88% chance of monetary policy easing in March, Motilal Oswal Financial Services said in a note.
For further cues, investors will turn their focus on US Chicago purchasing managers index data, due later today.
Silver price on the MCX fell, tracking losses in industrial metals and gold.
At 1845 IST, the following were the most active contracts of bullion:
-February gold was down 0.3% at 63,168 rupees per 10 gm on MCX
-February gold was down 0.4% at $2,094.2 an ounce on COMEX
-March silver was down 1.2% at 73,956 rupees per kg on MCX
–March silver was down 1.6% at $24.22 an ounce on COMEX
Outlook for the rest of the session:
-MCX gold seen at 62,948-63,695 rupees per 10 gm
-COMEX gold seen at $2,049.17-$2,100.0 an ounce
-MCX silver seen at 73,182-74,974 rupees per kg
-COMEX silver seen at $23.83-$24.34 an ounce
End
US$1 = 83.20 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Tanima Banerjee
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