Informist, Tuesday, Dec 5, 2023
By J Navya Sruthi
MUMBAI – Futures contracts of GOLD were flat on both the Multi Commodity Exchange of India and COMEX as investors awaited the release of US non-farm payrolls data later in the week. The recovery in the dollar was offset by fresh inflows in gold exchange-traded funds.
The dollar index, which measures the strength of the greenback against a basket of six major currencies, was up 0.2% at 103.76. A firm greenback makes dollar-denominated precious metals expensive for buyers using other currencies.
On Monday, gold holdings with SPDR Gold Trust, the world’s largest gold-backed ETF, rose by 2.3 tn to 881.12 tn from 878.82 tn on Friday. The fund has a market value of $58.02 bln.
“Gold prices steadied after more than 2% decline yesterday as markets dialled back expectations for the first rate cut by the US Federal Reserve in early 2024, amid concerns that traders grew overoptimistic following recent comments by Fed Chair Powell,” Kotak Securities said in a note.
“The surge in the gold price was excessive, which was already evident yesterday when gold quickly shed its gains again, dropping back to $2,020 during the course of trading,” Commerzbank said in a report.
Investors will take cues from the US Labour Department Job Openings and Labor Turnover Survey and the Institute for Supply Management services purchasing managers’ index data to be released later in the day.
SILVER prices fell tracking weak cues from industrial metals and the market rally on Fed pivot bets were seen as overdone.
At 1820 IST, the following were the most-active contracts of bullion:
-February gold was flat at 62,349 rupees per 10 gm on MCX
-February gold was up 0.1 at $2,043.85 an ounce on COMEX
-March silver was down 0.5% at 75,772 rupees per kg on MCX
–March silver was down 0.7% at $24.73 an ounce on COMEX
Outlook for the rest of the session:
-MCX gold seen at 62,000-62,720 rupees per 10 gm
-COMEX gold seen at $2,012-$2,052 an ounce
-MCX silver seen at 75,200-77,400 rupees per kg
-COMEX silver seen at $24.20-$24.80 an ounce
End
US$1 = 83.38rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Saji George Titus
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