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Wednesday, December 1, 2021

India Bullion: Gold hits 8-day high on rising inflation, weak dollar

Informist, Friday, Oct 22, 2021

 

By Chinmay Mungse

 

MUMBAI – Gold contracts on the Multi Commodity Exchange of India and COMEX hit an eight-day-high today due to concerns about rising inflation, coupled with a weaker US dollar, which boosted haven demand.

 

* Higher inflation due to surging energy prices has also raised concerns about stagflation. GOLD tends to benefit as consumers use the yellow metal to hedge against rising inflation and poor economic growth. 

 

* The December gold contract on the MCX touched an eight-day high of 47,729 rupees per 10 gm today. On the other hand, the same-month gold contract on the COMEX touched $1,795.7 per ounce, the highest in eight weeks.

 

* “Gold is expected to further gain strength in the week amid global inflation concerns, and due to the power and debt crisis in China,” said Manoj Jain, head of commodity research at Prithvi Finmart. “Corrections in the global equity market has also increased safe-haven demand.”

 

* Fresh outbreaks of COVID-19 in China and Russia have further increased safe-haven demand for both gold and SILVER, said analysts. 

 

* At 1702 IST, the most active contracts of bullion were:   

   –December gold up 0.6% at 47,701 rupees per 10 gm on MCX
   –December gold up 0.8% at $1,795.6 an ounce on COMEX
   –December silver up 0.9% at 65,594 rupees per kg on MCX
   –-December silver up 1.1% at $24.43 an ounce on COMEX 

 

* Outlook for the evening session by Prithvi Finmart:
   –MCX gold seen at 47,550-47,900 rupees
   –COMEX gold seen at $1,772-$1,808
   –MCX silver seen at 65,220-66,100 rupees
   –COMEX silver seen at $20.10-$24.60

 

End

US$1 = 74.89 rupees

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

 

Edited by Pranav S. Joshi

 

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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Send comments to [email protected]

 

© Informist Media Pvt. Ltd. 2021. All rights reserved.

 

Source: Cogencis

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