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India Bullion: Gold falls on MCX, COMEX ahead of US Fed meet outcome

Informist, Wednesday, Nov 3, 2021

 

Chinmay Mungse

 

MUMBAI – GOLD contracts on the Multi Commodity Exchange of India and COMEX fell today as investors waited for the outcome of the US Federal Reserve’s policy meeting later today.

 

* Strength in equity markets in the US and other parts of the world has also boosted sentiment for riskier assets such as stocks, while limiting demand for the yellow metal. 

 

* The US Fed committee will assess how the central bank plans to combat rising inflation and ease worries over economic recovery.

 

* “The market expectations of a sooner rate hike has pressured bullion prices,” said Tapan Patel, senior analyst at HDFC Securities. “The US Fed is likely to begin paring its monthly asset purchases by $15 billion every month till mid-2022.” he added

 

* “The anticipation of US Fed’s decision is the major factor moving the market today,” said Sriram Iyer, senior analyst at Reliance Securities. “We expect a sell-off in gold if the US Fed is extremely hawkish.”

 

* A stronger rupee against the dollar also weighed on gold prices in the domestic market. A stronger rupee makes commodities priced in the greenback cheaper.

 

* At 1634 IST, the most active contracts of bullion were:
   –December gold down 0.5% at 47,407 rupees per 10 gm on MCX
   –December gold down 0.3% at $1,783.8 an ounce on COMEX
   –December SILVER up 0.2% at 63,330 rupees per kg on MCX
   –-December silver up 0.5% at $23.62 an ounce on COMEX

 

* Outlook for the evening session:
   –MCX gold seen at 47,240-47,730 rupees
   –COMEX gold seen at $1,765-$1,795
   –MCX silver seen at 62,800-64,000 rupees
   –COMEX silver seen at $23.40-$24.65

 

 

End

US$1 = 74.45 rupees

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

 

 

Edited by Snigdha Kuttikat

 

 

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

 

Source: Cogencis

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