Informist, Tuesday, Nov 7, 2023
By J Navya Sruthi
MUMBAI – Futures contracts of GOLD fell today on the Multi Commodity Exchange, tracking weak cues from COMEX because of a strong US dollar and weak safe-haven demand.
The dollar index, which measures the strength of the greenback against a basket of six major currencies, was up 0.4% at 105.66.
“The West Asia conflict has not escalated any further so far, despite the Israeli army’s ground offensive in the Gaza Strip, the gold price appears to be shedding some of its geopolitical risk premium again,” said Carsten Fritsch, commodity analyst at Commerzbank in a note.
However, the downside in the yellow metal was limited due to fresh inflows in gold exchange-traded funds and money managers raising their long positions.
On Monday, gold holdings with SPDR Gold Trust, the world’s largest gold-backed ETF, rose by 4.33 tn to 867.57 tn. The fund has a market value of $55.33 bln.
Money managers increased their long positions on the COMEX Gold contracts by 19,000 lots to 74,800 contracts as of Oct 31, according to Commodity Futures Trading Commission data.
Investors will eye China’s consumer price index data which is due on Thursday and speeches by Federal Open Market Committee members later in the week. China is the largest producer and consumer of gold.
The spot gold-silver ratio, also known as the mint ratio, was higher at 87.18, indicating that gold had outperformed silver. The ratio measures the ounces of silver required to buy an ounce of gold.
SILVER prices fell due to selloff in industrial metals and weak cues from gold.
At 1730 IST, the MCX Bulldex, an index tracking the real-time performance of gold and silver futures on the MCX, was down 151 points, or 0.9%, at 15846.
The December and February gold contracts recorded turnovers of 23.16 bln rupees and 2.93 bln rupees, respectively. At 1730 IST, the December and March silver contracts saw turnovers of 32.07 bln rupees and 3.06 bln rupees, respectively.
The average traded price of the December gold contract on the domestic exchange was 60,466.48 rupees per 10 gm.
At 1730 IST, the following were the most active contracts of bullion:
-December gold was down 0.7% at 60,338 rupees per 10 gm on MCX
-December gold was down 0.9% at $1,970.60 an ounce on COMEX
-December silver was down 1.9% at 70,770 rupees per kg on MCX
–December silver was down 2.7% at $22.60 an ounce on COMEX
Outlook for the rest of the session:
-MCX gold seen at 60,000–60,800 rupees per 10 gm
-COMEX gold seen at $1,968.0–$2,000.0 an ounce
-MCX silver seen at 70,200-72,200 rupees per kg
-COMEX silver seen at $22.40-$22.80 an ounce
End
US$1 = 83.26 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Maheswaran Parameswaran
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