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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




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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Source: Cogencis

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