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India Bullion: MCX up on mkt correction, COMEX gold dn on strong dlr

Informist, Monday, May 16, 2022

 

By Chinmay Mungse

 

MUMBAI – GOLD and SILVER contracts on the Multi Commodity Exchange of India were trading higher today due to a technical rebound after falling sharply last week, according to experts.

 

* “After falling sharply in the previous week, gold prices corrected slightly with weakness in the rupee aiding the rise,” said Ajay Kedia, research head at Kedia Comtrade.

 

* The benchmark GOLD contracts on COMEX were trading in the red as the dollar index remained elevated, dampening demand for the yellow metal.

 

* Gold prices continued their slide as investors and market participants remained cautious about an aggressive stance by the US Federal Reserve after higher US consumer price index-based inflation. 

 

* “Gold prices traded under pressure on a stronger dollar despite a fall in bond yields,” said Tapan Patel, senior analyst at Reliance Securities. Traders and investors expect the Fed to aggressively hike rates in the coming months, he said.

 

* On Thursday, US Fed Chair Jerome Powell said the battle to control inflation would include some pain, as the impact of higher interest rates is felt. Powell’s statements fuelled expectations of an aggressive approach by the central bank to tackle inflation.

 

* At 1647 IST, the most active contracts of bullion were:
   –June gold was up 0.1% at 49,937 rupees per 10 gm on MCX
   –June gold was down 0.3% at $1,803.3 an ounce on COMEX
   –July silver was up 0.9% at 59,865 rupees per kg on MCX
   –-July silver was up 0.8% at $21.13 an ounce on COMEX

 

* Outlook for the evening session:
   –MCX gold seen at 49,800-50,200 rupees
   –COMEX gold seen at $1,795-$1,850
   –MCX silver seen at 59,600-60,400 rupees
   –COMEX silver seen at $20.90-$21.50.

End

 

US$1 = 77.45 rupees

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

 

Edited by Michael Correya

 

 

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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