Informist, Monday, Aug 14, 2023
By Sandeep Sinha
MUMBAI – Futures contracts of GOLD were marginally higher on the Multi Commodity Exchange of India and the COMEX as the dollar was steady ahead of the release of the US Federal Reserve’s July meeting minutes later in the week. The minutes will provide guidance on the US central bank’s future interest rate stance.
The dollar index, which measures the strength of the greenback against a basket of six major currencies, was flat at 102.90.
“We maintain our moderate-to-bearish outlook on bullion for this week,” said Saumil Gandhi, senior analyst for commodities at HDFC Securities. “Gold price is continuing its slow slide towards the $1,880 level as uncertainty lingers over whether the Federal Reserve will raise interest rates one more time in this cycle.”
However, the upside in the yellow metal was restricted due to an outflow from gold exchange-traded fund. Gold holdings with SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell by 3.75 tn to 899.63 tn, the lowest level since Jan 22, 2020. The fund has a market value of $55.40 bln.
The spot gold-silver ratio, also known as the mint ratio, was higher at 84.38, indicating that gold had outperformed silver. The ratio measures the ounces of silver required to buy an ounce of gold.
SILVER prices traded lower on account of weakness in industrial metals and subdued cues in gold.
At 1730 IST, MCX Bulldex, an index tracking the real-time performance of gold and silver futures on the MCX, was up just 6 points, or 0.0%, at 15727.
The October and December gold contracts recorded turnovers of 6.63 bln rupees and 659.93 mln rupees, respectively. At 1730 IST, the September and December silver contracts saw turnovers of 10.15 bln rupees and 1.52 bln rupees, respectively.
The average traded price for the October gold contract on the domestic exchange was 58,938.31 rupees per 10 gm.
On the daily technical charts, the MCX October gold contract traded lower than the 20-, 50- and 100-day simple moving averages but higher than the five- and 200-day simple moving averages. The momentum oscillator, Relative Strength Index, was at 48.02, indicating a neutral trend in price.
At 1730 IST, following were the most-active contracts of bullion:
-October gold was up 0.2% at 58,993 rupees per 10 gm on MCX
-December gold was up 0.1% at $1,948.0 an ounce on COMEX
-September silver was flat at 69,976 rupees per kg on MCX
–September silver was down 0.1 at $22.73 an ounce on COMEX
Outlook for the rest of the session:
-MCX gold seen at 58,600–59,300 rupees per 10 gm
-COMEX gold seen at $1,940.0–$1,955.0 an ounce
-MCX silver seen at 69,800-70,800 rupees per kg
-COMEX silver seen at $22.55-$23.0 an ounce
End
US$1 = 82.95 rupees
Reported by Sandeep Sinha
Edited by Rajeev Pai
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