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India Bullion: Down tracking COMEX on firm dollar; US CPI data eyed

Informist, Monday, Jul 11, 2022

 

By Chinmay Mungse

 

MUMBAI – GOLD and SILVER contracts on the Multi Commodity Exchange of India and COMEX were down today as a firm dollar against a basket of major currencies limited demand for the precious metals.

 

* Gold prices have been on a downward spiral recently as the US unit has risen steadily, while expectations of central banks raising interest rates have reduced demand for the yellow metal. 

 

* Last week, data from the US labor department showed that the country added 100,000 more jobs than initially expected, which also weighed on gold prices. “The US employment data showed a healthy sign, which eased some recession fears, raising expectations of more monetary tightening from the US Federal Reserve,” said Tapan Patel, senior analyst at HDFC Securities.

 

* Investors are now focussing on the US consumer price index data, scheduled to be released on Wednesday. According to a poll by Dow Jones, US CPI is seen higher on month at 8.8%, which might compel the Fed to stick to aggressive monetary policy tightening.

 

* According to the CME FedWatch indicator, more than 93% of market participants expect the Fed to raise interest rates by 75 basis points to 2.25-2.50% at its upcoming policy meet this month.

 

* At 1655 IST, the most active contracts of bullion were:
   –August gold was down 0.2% at 50,693 rupees per 10 gm on MCX
   –August gold was down 0.4% at $1,735 an ounce on COMEX
   –September silver was down 0.1% at 57,054 rupees per kg on MCX
   –-September silver was down 0.3% at $19.13 an ounce on COMEX

 

* Outlook for the evening session:
   –MCX gold seen at 50,100-51,050 rupees
   –COMEX gold seen at $1,714-$1,754
   –MCX silver seen at 56,066-57,250 rupees
   –COMEX silver seen at $18.73-$19.43

 

End

 

US$1 = 79.44 rupees

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

 

Edited by Aditya Sakorkar

 

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.

 

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

Source: Cogencis

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