Informist, Tuesday, Feb 6, 2024
By Sandeep Sinha
MUMBAI – Futures contracts of GOLD were a tad lower on the Multi Commodity Exchange of India and the COMEX because of a mild strength in the dollar, which makes precious metals priced in dollars expensive for holders of other currencies.
The dollar index, which measures the strength of the greenback against a basket of six major currencies, was up 0.1% at 104.51 on firm US economic data. The US Institute for Supply Management service purchasing managers’ index came in at 53.4% in January against 50.5% in December.
“We expect gold prices to remain weak amid the backdrop of higher rates in the near term boosting yields and higher ETF outflows,” Kotak Securities said in a note. Market participants await a speech by Federal Open Market Committee member Loretta Mester later today.
On Monday, gold holdings with SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, were steady at 851.73 tn. The fund has a market value of $55.24 bln.
The spot gold-silver ratio, also known as the Mint Ratio, was higher at 90.80 to 1, which indicates that silver has underperformed gold. The ratio measures the ounces of silver required to buy an ounce of gold.
SILVER prices extended decline for the third straight day, tracking a decline in bullion coupled with a stronger greenback. The slowdown worries from China because of ongoing stress in the property sector also weighed on prices.
MCX Bulldex, an index tracking the real-time performance of gold and silver futures on the MCX, was down just 10 points at 15995 points.
At 1605 IST, the April and June gold contracts recorded turnovers of 6.94 bln rupees and 852.65 mln rupees, respectively. At the same time, the March and May silver contracts saw turnovers of 8.15 bln rupees and 1.03 bln rupees, respectively.
* At 1605 IST, the following were the most-active contracts of bullion:
–April gold was down 0.1% at 62,245 rupees per 10 gm on MCX
–April gold was down 0.1% at $2,041.20 an ounce on COMEX
–March silver was down 0.2% at 70,320 rupees per kg on MCX
–-March silver was down 0.1% at $22.61 an ounce on COMEX
* Outlook for the rest of the session:
–MCX gold seen at 60,880–62,720 rupees per 10 gm
–COMEX gold seen at $2,022.0–$2,068.0 an ounce
–MCX silver seen at 69,600-71,400 rupees per kg
–COMEX silver seen at $22.22-$22.88 an ounce
End
US$1 = 83.06 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Vidhi Verma
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