India Bullion: Up on MCX, COMEX on ambiguity in US-China trade talks
Tuesday, Oct 22
By Roshni Devi
MUMBAI – Bullion contracts on domestic and global exchanges were trading higher today as investors were cautious about lack of clarity in US-China trade negotiations, analysts said.
There have been mixed cues on the way forward for the trade talks. US President Donald Trump said efforts to end a trade war with China were progressing well. Last week, he said the first phase of a trade deal was expected to be signed by mid-November. White House Economic Adviser Larry Kudlow said 15% US tariff on Chinese goods could be withdrawn if negotiations continued to go well.
Today, Chinese Vice Foreign Minister Le Yucheng said as long as both sides respected each other, problems could be resolved.
This was even as China sought $2.4 bln in retaliatory sanctions against the US for non-compliance with an earlier World Trade Organization ruling. US Commerce Secretary Wilbur Ross said, “It’s more critical that it be a proper deal than exactly when it occurs.”
“Volatility in gold is here to stay. The public likes gold now…with the dragged out Brexit vote, US trade deal with China and other seasonal factors, all adding to give the bulls an edge,” Investing.com quoted Eli Tesfaye, a precious metals strategist at Chicago-based RJO Futures.
The Brexit plan seems to have hit another roadblock after the House of Commons speaker rejected UK Prime Minister Boris Johnson’s attempt to hold a fresh vote on his Brexit deal.
At 1645 IST, the December gold contract was up 0.1% at 37,919 rupees per 10 gm and the same-month silver contract was up 0.2% at 45,516 rupees per kg on the MCX. The December gold contract on the COMEX was up 0.2% at $1,490.50 an ounce and the same-month silver contract was at $17.64, each up 0.2% from the previous close.
For the rest of the day, the gold contract on MCX is seen at 37,750-38,100 rupees per 10 gm, and on COMEX at $1,473-$1,492 an ounce, Angel Commodities said in a report.
The December silver contract on COMEX is seen at $17.20-$17.80 an ounce, and at 44,800-46,100 rupees per kg on the MCX. End
US$1 = 70.9625 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Nidhi Chugh
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