Informist, Wednesday, Oct 6, 2021
By Sayantan Sarkar
MUMBAI – GOLD contracts on Multi Commodity Exchange of India were slightly higher today as the rupee was weak against the dollar. A weaker rupee makes dollar-denominated commodities more expensive.
* SILVER contracts fell on MCX, tracking COMEX prices as yields on US Treasury bills continued their march north, while the dollar strengthened on expectation that the US Federal Reserve will taper asset purchases. Gold prices were also lower on COMEX today.
* Bond yields in the US reached 1.57% in the 10-year segment earlier today, putting them at their highest level in more than three months, Commerzbank AG said in a report.
* Bullion prices fall when yields rise as the precious metals do not fetch any interest rates, which increases the opportunity cost of holding these assets.
* Meanwhile, foreign exchange firm Oanda has said that if non-farm payrolls are firm, the Fed will taper asset purchases. The US non-farm payroll data is scheduled to be released on Friday.
* At 1639 IST, the most active contracts of bullion were:
–December gold up 0.2% at 46,843 rupees per 10 gm on MCX
–December gold down 0.5% at $1,752.5 an ounce on COMEX
–December silver down 0.6% at 60,634 rupees per kg on MCX
–-December silver down 1.2% at $22.31 an ounce on COMEX
* Outlook for the evening session:
–MCX gold seen at 46,500-46,900 rupees
–COMEX gold seen at $1,730-$1,760
–MCX silver seen at 58,200-61,180 rupees
–COMEX silver seen at $22.17-$22.83
US$1 = 74.98 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Shirsha Thakur
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