Informist, Friday, Jul 15, 2022
By Chinmay Mungse
MUMBAI – GOLD contracts on the Multi Commodity Exchange of India fell today, tracking overnight losses on benchmark contracts on COMEX.
* Benchmark GOLD contracts on COMEX were flat today as positive cues from a pullback in the US dollar index were offset by rising expectations of an aggressive interest rate hike by the US Federal Reserve.
* Higher US consumer price inflation in June stoked market expectations of a 100-basis-point interest rate hike by the US Fed in its July meeting, dulling demand for the precious metal.
* “Gold prices extended downside on expectations that US Fed will go for aggressive rate hikes in its upcoming meeting to tackle record inflation,” said Tapan Patel, senior analyst at Reliance Securities.
* However, the US dollar index took a breather after climbing to a two-decade high of 109.29 on Thursday.
* Lower level buying in the most-active August gold contract also limited the downside in gold prices. The most-active August gold contract touched an 11-month low of $1,695 per ounce on Thursday, which invoked a ‘buy-on-dip’ sentiment.
* At 1714 IST, the most-active contracts of bullion were:
–June gold was down 0.3% at 50,084 rupees per 10 gm on MCX
–June gold was flat at $1,704.9 an ounce on COMEX
–July SILVER was down 0.1% at 54,982 rupees per kg on MCX
–-July silver was up 0.7% at $18.35 an ounce on COMEX
* Outlook for the evening session:
–MCX gold seen at 49,800-50,500 rupees
–COMEX gold seen at $1,685-$1,720
–MCX silver seen at 54,480-55,720 rupees
–COMEX silver seen at $17.79-$18.42.
US$1 = 79.88 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Avishek Dutta
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