Informist, Tuesday, Jan 30, 2024
By Sandeep Sinha
MUMBAI – Futures contracts of gold on the Multi Commodity Exchange of India and the COMEX rose today, supported by a weaker dollar ahead of the outcome of the US Federal Reserve’s policy meeting, due early Thursday. Escalating geopolitical tensions in West Asia also bolstered the yellow metal and its safe-haven appeal.
The dollar index, which measures the strength of the greenback against a basket of six major currencies, was down 0.1% at 103.39 at 1740 IST. A weaker greenback makes commodities priced in the dollar cheaper for holders of other currencies, boosting demand for precious metals.
Investors now await the release of US Consumer Confidence data and Job Openings and Labor Turnover Survey, due later in the day, for further cues.
However, the upside in the precious metal was restricted by outflows of exchange traded funds. On Monday, gold holdings with SPDR Gold Trust, the world’s largest gold-backed exchange traded fund, fell by 1.16 tn to 854.89 tn. The fund has a market value of $55.57 bln.
The spot gold-silver ratio, also known as the Mint Ratio, was lower at 88.02 to 1, which indicates that silver has outperformed gold. The ratio measures the ounces of silver required to buy an ounce of gold.
SILVER prices were steady due to lack of cues as weakness in base metals was offset by positive cues in gold.
MCX Bulldex, an index tracking the real-time performance of gold and silver futures on the MCX, was down just 4 points at 16157 points.
As at 1800 IST, the February and April gold contracts recorded turnovers of 6.28 bln rupees and 17.05 bln rupees, respectively. At the same time, the May and March silver contracts saw turnovers of 9.98 bln rupees and 496.59 mln rupees, respectively.
* At 1800 IST, the following were the most active contracts of bullion:
–February gold was up 0.4% at 62,450 rupees per 10 gm on MCX
–February gold was up 0.5% at $2,034.80 an ounce on COMEX
–March silver was flat at 72,375 rupees per kg on MCX
–-March silver was flat at $23.25 an ounce on COMEX
* Outlook for the rest of the session:
–MCX gold seen at 62,300–62,670 rupees per 10 gm
–COMEX gold seen at $2,025–$2,045 an ounce
–MCX silver seen at 72,113-72,713 rupees per kg
–COMEX silver seen at $23.10-$23.35 an ounce
End
US$1 = 83.11 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Deepshikha Bhardwaj
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