Informist, Monday, Jul 25, 2022
By Sayantan Sarkar
MUMBAI – GOLD contracts on Multi Commodity Exchange of India and COMEX were largely flat today as investors awaited the outcome of the US Federal Reserve’s policy meeting later this week.
* Gold prices have fallen sharply for the past few weeks and are on track for a fourth consecutive month of decline.
* Inflation in the US has surged to a multi-decade high, which has spurred expectations of the country’s central bank raising interest rates sharply. This has been weighing on gold’s appeal for some time now as both the dollar and yields on US Treasury bills have spiked.
* SILVER contracts on both local and global exchanges were in the red on the expectation of a steep hike in US interest rates.
* “The growing speculation over US Federal Reserve rate hike may keep bullion prices under check for short term,” said Tapan Patel, senior analyst at HDFC Securities.
* Last week, the European Central Bank hiked interest rates by 50 basis points even as Europe’s economy has slowed down over the past few months, owing to a shortage in energy supplies from Russia.
* At 1751 IST, the most active contracts of bullion were:
–June gold was flat at 50,634 rupees per 10 gm on MCX
–June gold was flat at $1,725 an ounce on COMEX
–September silver was down 0.5% at 54,840 rupees per kg on MCX
–-September silver was down 0.5% at $18.52 an ounce on COMEX
* Outlook for the evening session:
–MCX gold seen at 49,780-51,070 rupees
–COMEX gold seen at $1,698-$1,739
–MCX silver seen at 53,870-55,810 rupees
–COMEX silver seen at $18.30-$19.00.
US$1 = 79.73 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Shirsha Thakur
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