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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




US$1 = 79.37 rupees

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


Edited by Maheswaran Parameswaran


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Source: Cogencis

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