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Tuesday, October 4, 2022

India Bullion: Up on MCX, COMEX as US dollar slips; US CPI data eyed

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

 

End

 

US$1 = 79.63 rupees

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

 

Edited by Sushmita Mukherjee

 

 

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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