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India Bullion: Up on MCX on weak rupee; US inflation data in focus

Informist, Tuesday, Oct 12, 2021

 

By Chinmay Mungse

 

MUMBAI – GOLD and SILVER contracts rose on the Multi Commodity Exchange of India today due to a weaker rupee against the dollar. A weaker rupee makes dollar-denominated commodities more expensive for domestic investors. 

 

* Gold rose on COMEX today as US inflation data is scheduled to be released on Wednesday. However, analysts believe there will not be any major movements in the commodity till the US Federal Reserve meeting in the first week of November.

 

* Investors will focus on US inflation and retail sales data, and minutes of the Federal Reserve’s September meeting, due later this week. Higher-than-expected inflation print in the US may support gold prices later this week, experts said. Gold is used by investors to hedge against rising inflation. 

 

* In addition, the Fed is also expected to take a call with regard to the extent of tapering of asset purchases at its next policy meeting in November.

 

* Meanwhile, silver contracts on COMEX were under pressure in the Asian trade today due to weak industrial demand, experts said.

 

* Silver assets with iShares Silver Trust fell by 86.38 tn on Monday to 16,987.04 tn, as per data on the website of the world’s largest silver exchange-traded fund.  

 

* At 1636 IST, the most active contracts of bullion were:
   –December gold up 0.5% at 47,268 rupees per 10 gm on MCX
   –December gold up 0.4% at $1,762.7 an ounce on COMEX
   –December silver up 0.2% at 61,874 rupees per kg on MCX
   –-December silver down 0.5% at $22.57 an ounce on COMEX 

 

* Outlook for the evening session by Reliance Securities:
   –MCX gold seen at 46,700-47,400 rupees
   –COMEX gold seen at $1,720-$1,785
   –MCX silver seen at 60,000-62,800 rupees
   –COMEX silver seen at $22.50-$23.30

 

End

 

US$1 = 75.51 rupees

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Aditya Sakorkar

 

Cogencis news is now Informist. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

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Source: Cogencis

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