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India Bullion: Down on MCX, COMEX on Fed Powell’s hawkish remarks

Informist, Thursday, Jun 23, 2022


By Chinmay Mungse


MUMBAI – GOLD and SILVER contracts on the Multi Commodity Exchange of India and COMEX fell today due to hawkish remarks by US Federal Reserve Chair Jerome Powell on Wednesday.


* On the first day of his testimony, Powell reaffirmed his commitment to the Fed’s aggressive rate hike plan in light of stubbornly high inflation. During his testimony before the Senate Banking Committee, Powell said the Fed was strongly committed to bringing inflation down and the pace of future rate increases would continue to depend on incoming data.


* “The markets seem convinced that the Fed would retain its aggressive policy tightening path and have been pricing in another 75-bps rate hike at the next US Fed meeting in July,” fxstreet.com said in a report.


* Powell also declined to rule out a 100-bps increase in interest rates, saying the central bank would make whatever moves necessary to restore price stability.


* “Market participants are now eyeing Powell’s today’s testimony before Congress for fresh insight on the central bank’s policy plans,” said Ajay Kedia, research head at Kedia Comtrade.


* At 1627 IST, the most-active contracts of bullion were:
   –August gold was down 0.3% at 50,736 rupees per 10 gm on MCX
   –August gold was down 0.4% at $1,830.6 an ounce on COMEX
   –July silver was down 1% at 60,046 rupees per kg on MCX
   –-July silver was down 1.4% at $21.11 an ounce on COMEX


* Outlook for the evening session:
   –MCX gold seen at 50,570-51,200 rupees,
   –COMEX gold seen at $1,825-$1,850
   –MCX silver seen at 59,550-61,380 rupees
   –COMEX silver seen at $21.19-$21.66




US$1 = 78.30 rupees

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


Edited by Avishek Dutta


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Source: Cogencis

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