Informist, Friday, Jun 30, 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 weakened after the US inflation rose moderately in May.
The dollar index, which measures the strength of the greenback against a basket of major currencies, was down 0.4% at 102.91. A weaker greenback makes commodities priced in the dollar cheaper for holders of other currencies.
US personal consumption expenditure price index rose 0.1% on month in May lower than analysts’ expectation of 0.2% rise.
However, the upside in the yellow metal was restricted due to outflow in gold exchange-traded funds. Gold holdings with SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell by 1.16 tn at 924.50 tn. The fund has a market value of $56.44 bln.
The bullion metal turned positive after a gap-down opening on the MCX and traded near day’s high at 1950 IST. The average traded price during the day on the domestic exchange was 57,968.40 rupees per 10 gm.
The spot gold-silver ratio, also known as the mint ratio, was lower at 84.54, indicating that silver had outperformed gold. 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 34 points, or 0.2%, at 15634 as of 1955 IST.
The August and October gold contracts recorded turnovers of 25.02 bln rupees and 2.59 bln rupees, respectively. At 1955 IST, the July and September silver contracts saw turnovers of 753.40 bln rupees and 22.93 bln rupees, respectively.
On the technical charts, MCX August gold contract traded below 20-, 50-, and 100-day simple moving averages, but was higher than the 5- and 200-day simple moving averages on the daily chart. The momentum oscillator, Relative Strength Index, is at 33.89, suggesting a bearish trend in the prices.
* At 2000 IST, following were the most-active contracts of bullion:
-August gold was up 0.3% at 58,176 rupees per 10 gm on MCX
-August gold was up 0.4% at $1,924.35 an ounce on COMEX
-July silver was up 0.8% at 68,750 rupees per kg on MCX
–July silver was up 0.6% at $22.72 an ounce on COMEX
* Outlook for the rest of the session:
-MCX gold seen at 57,500–58,200 rupees per 10 gm
-COMEX gold seen at $1,905–$1,932 an ounce
-MCX silver seen at 68,500-69,500 rupees per kg
-COMEX silver seen at $22.40-$22.95 an ounce
End
US$1 = 82.04 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Maheswaran Parameswaran
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