India Bullion: Fall as rupee firm, flat on COMEX due to mixed cues
Thursday, Dec 5
By Roshni Devi
MUMBAI – Bullion contracts were down today on the Multi Commodity Exchange of India as the rupee was stronger against the dollar, which makes the import of dollar-denominated commodities like gold cheaper, analysts said.
At 1715 IST, the February contract of gold on the MCX was down 0.2% at 38,016 rupees per 10 gm and the March silver contract was 0.3% lower at 44,309 rupees per kg.
The February contract of gold on the COMEX was at $1,480.30 an ounce and the March silver contract was at $16.92 an ounce, both unchanged from the previous close.
Contracts of gold and silver were flat on the COMEX as profit booking negated gains from a weak dollar against the euro and mixed cues on the US-China trade deal.
Prices of gold hit a near-one month high of $1,489.90 an ounce on Wednesday.
On Tuesday, US President Donald Trump said it might be better to wait until after the US presidential elections in 2020 to strike a trade deal with China. Commerce Secretary Wilbur Ross supported Trump’s statement and said the US would impose another round of tariffs on Chinese goods on Dec 15 unless there were “some real reasons (to) postpone them”.
Bloomberg on Wednesday reported that the US and China are moving “closer to agreeing on the amount of tariffs that would be rolled back in a phase-one deal despite tensions over Hong Kong and Xinjiang”.
“The facts and fundamentals still remain largely unchanged. After 18 months of strong negotiations…all we have seen (is) tremendous pushback from both camps and aside from a tentative phase-one agreement, which, by the way, is still not written, very little is changed in terms of a comprehensive agreement,” Gary Wagner of The Gold Forecast said in a report.
Investors will track US unemployment claims and trade balance data that will be released later today for cues.
For the rest of the day, the February contract of gold on MCX is seen at 37,860-38,360 rupees, and at $1,470-$1,493 on the COMEX.
The March contract of silver on the COMEX is seen at $16.60-$17.30 and at 43,700-45,400 rupees on the MCX. End
US$1 = 71.28 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Charumathi Sankaran
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