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India Bullion: Gold rises on MCX as rupee weakens against dollar

Informist, Friday, Dec 3, 2021


By Chinmay Mungse


MUMBAI – GOLD contracts today rose on the Multi Commodities Exchange of India after the rupee softened against the US dollar. 


* Benchmark contracts of gold rose on COMEX today ahead of the US non-farm employment data. Some analysts expect the data to be weak, which may lend support to gold prices.


* “The market is currently up as the non-farm employment data is expected to be weak, however, the uptick could be short-lived as the US Federal Reserve is expected to announce a timeline for interest rate hike program,” said Sriram Iyer, senior analyst at Reliance Securities.


* Fresh cases from Omicron variant of COVID-19 in the US and India have also supported prices in the domestic and international market. “Though the concerns related to the new variant are easing, emergence of fresh cases in the countries might boost the safe-haven appeal of the precious metal,” said Ajay Kedia, research head at Kedia Capital.


* With gains in the dollar index, analysts expect gold prices to move sideways to negative. “Bond yields in the US picked up moderately at almost the same time as the US dollar appreciated, which likewise generated headwind for the gold price,” Commerzbank AG said.


* At 1620 IST, the most-active contracts of bullion were:
   –February gold was up 0.5% at 47,621 rupees per 10 gm on MCX
   –February gold was up 0.6% at $1,772.8 an ounce on COMEX
   –March SILVER was up 0.2% at 61,227 rupees per kg on MCX
   –-March silver was up 0.2% at $22.35 an ounce on COMEX


* Outlook for the evening session:
   –MCX gold seen at 47,240-47,900 rupees
   –COMEX gold seen at $1,756-$1,790
   –MCX silver seen at 60,450-62,700 rupees
   –COMEX silver seen at $21.80-$22.72. End


US$1 = 75.16 rupees

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


Edited by Akul Nishant Akhoury


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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