32.4 C
New York
Friday, August 5, 2022

India Bullion: Down on MCX, COMEX on firm dollar, US bond yields

Informist, Friday, Aug 5, 2022

 

By Chinmay Mungse

 

MUMBAI – GOLD and SILVER contracts on the Multi Commodity Exchange of India and COMEX were down today due to a stronger US dollar against a basket of major currencies and higher yields on US treasury bond yields.

 

* Hawkish comments by Cleveland US Federal Reserve President Loretta Mester also exerted pressure on bullion prices in international markets.

 

* “The Fed should raise interest rates to above 4% in order to bring inflation back down to the 2% target. Therefore, the interest should see the continuation of elevation this year and for the next half year,” said Mester.

 

* However, escalating geopolitical tensions between the US and China over Taiwan limited the fall in gold prices. “Gold continues to rally as geopolitical tensions won’t be going away anytime soon and as central bankers worldwide brace for recessions,” said Ed Moya, senior market analyst at OANDA.

 

* Investors are now eyeing US non-farm payroll data for fresh triggers to gauge the trend in gold prices. According to analysts, non-farm payrolls in the US are expected to have increased by 200,000 in July, lower than the 372,000 increase in June. 

 

* “Lesser addition means that the economy is not in a good shape, which could further support bullion prices,” said Veeresh Hiremath, director at Finlit Consulting.

 

* At 1650 IST, the most-active contracts of bullion were:
   –October gold was down 0.3% at 52,010 rupees per 10 gm on MCX
   –October gold was down 0.3% at $1,790.4 an ounce on COMEX
   –September silver was down 0.6% at 57,674 rupees per kg on MCX
   –-September silver was down 0.7% at $19.98 an ounce on COMEX

 

* Outlook for the evening session:
   –MCX gold seen at 52,000-52,400 rupees
   –COMEX gold seen at $1,792-$1,822
   –MCX silver seen at 57,050-58,960 rupees
   –COMEX silver seen at $19.84-$20.80.

 

End

 

US$1 = 79.23 rupees

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

 

Edited by Avishek Dutta

 

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.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to [email protected]

 

© Informist Media Pvt. Ltd. 2022. All rights reserved.

Source: Cogencis

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

11,292FansLike
12,893FollowersFollow
749FollowersFollow
- Advertisement -

Latest Articles

Popular Articles