Informist, Wednesday, Jul 13, 2022
By Chinmay Mungse
MUMBAI – GOLD contracts on the Multi Commodity Exchange of India and COMEX were trading slightly higher today as the US dollar index slipped off multi-decade highs, boosting the appeal of precious metals.
* Firm US non-farm payrolls data and expectations of an aggressive monetary policy tightening from the US Federal Reserve drove the US dollar to 108.56 on Tuesday, the highest level since October 2002.
* “Gold prices are up today as the dollar index has taken a breather. The inflation data release from the US will bring volatility in the prices in the evening session,” said Tapan Patel, senior analyst at HDFC Securities.
* Lower yields on the benchmark US 10-year Treasury bonds also boosted the demand for the precious metal, thus supporting prices.
* The market players are awaiting the US inflation data today which may fuel investors’ expectations for a 75-basis-point interest rate hike by the US Fed later this month, as the central bank seeks to tame inflation.
* “A higher-than-expected headline CPI print should pave the way for yet another 75-bps hike by the Fed later this month and will continue to keep upside limited for bullion,” said Sriram Iyer, senior analyst at Reliance Securities.
* At 1653 IST, the most-active contracts of bullion were:
–August gold was up 0.3% at 50,619 rupees per 10 gm on MCX
–August gold was up 0.2% at $1,728.8 an ounce on COMEX
–September silver was flat at 56,430 rupees per kg on MCX
–-September silver was flat at $18.915 an ounce on COMEX
* Outlook for the evening session:
–MCX gold seen at 50,300-50,800 rupees
–COMEX gold seen at $1,714-$1,734
–MCX silver seen at 56,100-57,200 rupees
–COMEX silver seen at $18.65-$19.20
US$1 = 79.63 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Sushmita Mukherjee
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