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India Bullion: Gold down on firm dollar; US CPI in focus

Informist, Monday, Feb 12, 2024

 

By Sandeep Sinha

 

MUMBAI – Futures contracts of GOLD fell today on the Multi Commodity Exchange of India, in line with those on the COMEX, weighed down by the dollar’s strength that makes commodities priced in the greenback expensive for holders of other currencies and dulls the demand for precious metals. The sentiment was also weighed down by an outflow in gold exchange-traded funds.

 

The dollar index, which measures the strength of the greenback against a basket of six major currencies, was up 0.1% at 104.12 on the prospect of higher-for-longer US interest rates. “Robust US economic data and a chorus of hawkish Federal Reserve comments saw markets largely price out expectations for early interest rate cuts this year, capping gains for gold price,” Motilal Oswal Financial Services said in a note.

 

On Friday, gold holdings with the SPDR Gold Trust, the world’s largest gold-backed ETF, fell by 1.74 tn to 841.92 tn. The fund has a market value of $54.77 bln.

 

Investors will also keep an eye on the US CPI data, due Tuesday, to gauge the US Federal Reserve’s next move.

 

The spot gold-silver ratio, also known as the Mint Ratio, was lower at 88.21 to 1, which indicates that silver had outperformed gold. The ratio measures the ounces of silver required to buy an ounce of gold.

 

SILVER prices rose tracking firm overseas cues and firmness in industrial metals.

 

MCX Bulldex, an index tracking the real-time performance of gold and silver futures on the MCX, was up just 17 points at 16035 points.

 

At 1710 IST, the April and June gold contracts recorded turnovers of 9.47 bln rupees and 1.18 bln rupees, respectively. At the same time, the March and May silver contracts saw turnovers of 21.78 bln rupees and 3.13 bln rupees, respectively.

 

* At 1710 IST, the following were the most active contracts of bullion:

 –April gold was down 0.2% at 62,175 rupees per 10 gm on MCX

 –April gold was down 0.2% at $2,035.40 an ounce on COMEX

 –March silver was up 1.1% at 71,535 rupees per kg on MCX

 –-March silver was up 1.7% at $23.18 an ounce on COMEX

 

 * Outlook for the rest of the session:

 –MCX gold seen at 61,750–62,875 rupees per 10 gm

 –COMEX gold seen at $2,025.0–$2,048.0 an ounce

 –MCX silver seen at 70,410-71,920 rupees per kg

 –COMEX silver seen at $22.95-$23.40 an ounce

 

End

US$1 = 83.00 rupees

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

 

Edited by Deepshikha Bhardwaj

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

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© Informist Media Pvt. Ltd. 2024. All rights reserved.

Source: Cogencis

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