Informist, Monday, May 29, 2023
By Sandeep Sinha
MUMBAI – Futures contracts of gold were up marginally today on the Multi Commodity Exchange of India and COMEX because of a fall in the dollar index, which makes commodities priced in the greenback cheaper for holders of other currencies.
The dollar index, which measures the strength of the greenback against a basket of major currencies, was down 0.1% at 104.21.
On Saturday, US President Joe Biden and House Speaker Kevin McCarthy of the Republican Party reached a tentative deal to raise the federal government’s $31.4-trln debt ceiling through January 2025.
The tentative deal and US data released on Friday are both bearish for gold, though some support is possible on dissent noted among both Democrats and Republicans, said Praveen Singh, associate vice-president – fundamental currencies and commodities at Sharekhan by BNP Paribas.
“We expect short-term fundamentals to remain unfavourable for gold and a bearish trend is likely to extend in the yellow metal this week,” said Saumil Gandhi, senior analyst, commodities, HDFC Securities.
Holdings with SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, remained steady for a third straight day at 941.29 tn. The fund has a market value of $58.93 bln.
The spot gold-silver ratio, also known as the mint ratio, was higher at 83.81, indicating that gold has outperformed silver. The ratio measures the ounces of silver required to buy an ounce of gold.
MCX Bulldex, an index tracking the real-time performance of gold and silver futures on the MCX, was up 23 points, or 0.1%, at 16035 points as of 1825 IST.
The June and August gold contracts recorded turnovers of 21.31 bln rupees and 20.29 bln rupees, respectively. At 1825 IST, the July and September silver contracts saw turnovers of 9.25 bln rupees and 323.38 mln rupees, respectively.
* At 1825 IST, following were the most active contracts of bullion:
-June gold was up 0.4% at 59,615 rupees per 10 gm on MCX
-June gold was up 0.2% at $1,967.70 an ounce on COMEX
-July silver was up 0.2% at 71,330 rupees per kg on MCX
–July silver was up 0.2% at $23.40 an ounce on COMEX
* Outlook for the rest of the session:
-MCX gold seen at 59,200–59,900 rupees per 10 gm
-COMEX gold seen at $1,936–$1,970 an ounce
-MCX silver seen at 70,300-72,300 rupees per kg
-COMEX silver seen at $23.08-$23.50 an ounce
End
US$1 = 82.62 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Rajeev Pai
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