29.2 C
New York
Wednesday, August 10, 2022

India Bullion:Gold flat on MCX; down on COMEX as dollar rises sharply

Informist, Tuesday, Jul 5, 2022

 

By Sayantan Sarkar

 

MUMBAI – GOLD contracts on Multi Commodity Exchange of India were flat today even as prices on COMEX fell slightly because of a steep rise in the dollar. 

 

* A stronger dollar against major currencies makes gold more expensive, diminishing demand for the precious metal. 

 

* However, the overall pessimism surrounding the global economy and fears of a possible recession have kept the downside for gold limited. Investors buy gold due to its safe-haven appeal during times of economic distress. 

 

* “Overall, gold bugs will have taken a modicum of comfort that the fall below USD 1800 an ounce was short-lived, but the ensuing rally is uninspiring, to say the least,” Jeffrey Halley, senior market analyst Asia Pacific, OANDA, said in a report. “It suggests that any further US dollar strength this week could see the downside tested once again as it refuses to react positively to the flattening and move lower by the US yield curve,” he added. 

 

* Meanwhile, investors will await the release of the minutes of the US Federal Reserve’s meeting in June later this week, which may indicate further rate hikes in the coming months.  

 

* At 1721 IST, the most active contracts of bullion were:
   –August gold was flat at 52,100 rupees per 10 gm on MCX
   –August gold was down 0.2% at $1,798.5 an ounce on COMEX
   –September SILVER was down 0.4% at 58,286 rupees per kg on MCX
   –-September silver was flat at $19.69 an ounce on COMEX

 

* Outlook for the evening session by Angel One Commodities:
   –MCX gold seen at 51,680-52,950 rupees,
   –COMEX gold seen at $1,781-$1,838
   –MCX silver seen at 57,230-59,770 rupees
   –COMEX silver seen at $19.57-$20.42

 

End

 

US$1 = 79.37 rupees

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

 

Edited by Maheswaran Parameswaran

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. 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.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to [email protected]

 

© Informist Media Pvt. Ltd. 2022. All rights reserved.

 

Source: Cogencis

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

11,292FansLike
12,893FollowersFollow
748FollowersFollow
- Advertisement -

Latest Articles

Popular Articles