India Bullion: Gold prices tad up ahead of US jobs data

Informist, Thursday, Jul 20, 2023

By Sandeep Sinha

MUMBAI – Futures contracts of GOLD were a tad higher on the Multi Commodity Exchange of India and the COMEX as the dollar was steady ahead of the US jobs data.

The dollar index, which measures the strength of the greenback against a basket of major currencies, was flat at 102.27.

Analysts polled by Dow Jones had estimated the jobless claim to come in at 240,000.

“Gold and silver prices steadied after easing price pressures in the US and UK triggered reassessments on how much tightening central banks have left to do. Traders are unwinding aggressive bets on further hikes, amid the backdrop of cooling inflation and a slowdown in the economic activity, bolstering bullions,” Kotak Securities said in a note.

Gold holdings with SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose by 1.73 tn to 913.80 tn. The fund has a market value of $58.02 bln.

The spot gold-silver ratio, also known as the mint ratio, was at 78.64, indicating that silver had outperformed gold. The ratio measures the ounces of silver required to buy an ounce of gold.

SILVER prices rose marginally tracking a rally in equity markets and industrial metals. Also, the expectation of further policy support from China aided the positive sentiment.

At 1725 IST, MCX Bulldex, an index tracking the real-time performance of gold and silver futures on the MCX, was up 22 points, or 0.1%, at 16299.

The August and October gold contracts recorded turnovers of 15.84 bln rupees and 4.73 bln rupees, respectively. At 1720 IST, the September and December silver contracts saw turnovers of 12.04 bln rupees and 502.85 mln rupees, respectively.

The average traded price for the August gold contract during the day on the domestic exchange was 59,871.48 rupees per 10 gm.

On technical charts, the MCX August gold contract traded higher than the five-, 20-, 50-, 100- and 200-day simple moving averages on the daily chart. The momentum oscillator, Relative Strength Index, was at 64.75, indicating further upside in prices.

At 1720 IST, following were the most active contracts of bullion:

 -August gold was up 0.1 at 59,815 rupees per 10 gm on MCX

 -August gold was up 0.2% at $1,984.25 an ounce on COMEX

 -September silver was up 0.1% at 76,470 rupees per kg on MCX

 –September silver was up 0.1% at $25.40 an ounce on COMEX

 Outlook for the rest of the session:

 -MCX gold seen at 59,450–60,100 rupees per 10 gm

 -COMEX gold seen at $1,965.0–$2,005.0 an ounce

 -MCX silver seen at 75,800-77,150 rupees per kg

 -COMEX silver seen at $25.08-$25.58 an ounce

End

US$1 = 81.99 rupees

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Manisha Baxla

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Source: Cogencis