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India Bullion: Gold rises on short covering after multi-month low

Informist, Friday, Jul 22, 2022

 

By Chinmay Mungse

 

MUMBAI – GOLD contracts on the Multi Commodity Exchange of India and COMEX were trading higher today as investors covered their short positions after the yellow metal contracts hit multi-month lows on the exchanges.  

 

* Gold contracts on COMEX hit a 16-month low of $1,678.40 per ounce, while the same month contract on MCX hit a two-month low of 49,703 rupees per 10 gm on Thursday due to increased expectations of an aggressive monetary policy tightening by major global central banks. 

 

* “The gold market witnessed short covering and bargain buying post the sharp fall on Thursday,” said Veeresh Hiremath, director at Finlit Consulting. 

 

* A fall in the yields on US treasury bonds also supported gold prices in the international markets. 

 

* However, the European Central Bank’s decision to raise interest rates by 50 basis points is expected to cap the upside to gold prices in the later trading sessions, said analysts.

 

* The US Federal Reserve is also expected to further raise interest rates by 75 basis points in its upcoming meeting on Jul 26-27.

 

* At 1642 IST, the most active contracts of bullion were:
   –June gold was up 0.4% at 50,569 rupees per 10 gm on MCX
   –June gold was up 0.5% at $1,721.6 an ounce on COMEX
   –September SILVER was down 0.1% at 55,343 rupees per kg on MCX
   –-September silver was down 0.1% at $18.695 an ounce on COMEX

 

* Outlook for the evening session:
   –MCX gold seen at 50,300-50,700 rupees
   –COMEX gold seen at $1,710-$1,730
   –MCX silver seen at 55,000-55,800 rupees
   –COMEX silver seen at $18.50-$19.00.

 

End

 

US$1 = 79.85 rupees

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

 

Edited by Michael Correya

 

 

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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