Informist, Tuesday, Mar 21, 2023
By Sandeep Sinha
MUMBAI – Futures contracts of GOLD on the Multi Commodity Exchange of India were down, tracking prices on COMEX as investors booked profits after sharp gains in the past few sessions. An improvement in risk appetite globally, as fears of a banking crisis eased, also weakened safe-haven demand.
“Investors’ focus turned to the Federal Reserve policy decision on Wednesday, which could provide further direction for the yellow metal,” said Saumil Gandhi, senior analyst – commodities at HDFC Securities.
Gandhi expects that before the Fed policy meeting outcome, further unwinding of long positions is likely in gold, and the current-month contract on COMEX should retest the $1,955/ounce support level.
Markets are pricing in a 27% chance that the US Fed will hold its benchmark lending rate, while there is a 73% chance of a rate hike.
Indian consumers refrained from fresh jewellery buying as prices are near all-time highs in the domestic market. The country is the second-biggest consumer of gold, behind China.
However, the downside in the metal was limited due to weakness in the dollar index and fresh inflows into exchange-traded funds. A weaker greenback makes dollar-denominated precious metals attractive for foreign buyers.
Gold holdings with SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose by 3.47 tn to 924.55 tn on Monday. The exchange-traded fund has a market value of $58.52 bln.
MCX Bulldex, an index tracking the real-time performance of gold and silver futures on MCX, was down 2 points at 16050 as of 1650 IST.
As of 1650 IST, the April and June gold contracts recorded turnovers of 23.51 bln rupees and 6.59 bln rupees, respectively. At the same time, the May and July silver contracts saw a turnover of 10.35 bln rupees and 34.14 mln, respectively.
* At 1655 IST, the most-active contracts of bullion were:
–April gold was down 0.4% at 59,294 rupees per 10 gm on MCX
–April gold was down 0.6% at $1,971.85 an ounce on COMEX
–May silver was up 0.2% at 68,991 rupees per kg on MCX
–-May silver was down 0.1% at $22.61 an ounce on COMEX
* Outlook for the rest of the session:
–MCX gold seen at 58,825–59,695 rupees per 10 gm
–COMEX gold seen at $1,965–$1,985 an ounce
–MCX silver seen at 67,862-69,862 rupees per kg
–COMEX silver seen at $22.17-$22.97 an ounce
US$1 = 82.65 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Avishek Dutta
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