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India Bullion: Down tailing COMEX ahead of US CPI data release

Informist, Wednesday, Aug 10, 2022

 

By Chinmay Mungse

 

MUMBAI – GOLD and SILVER contracts on the Multi Commodity Exchange of India and COMEX snapped a two-day winning run as investors adjusted net positions ahead of the release of US consumer price index data later today.

 

* According to a poll by Dow Jones, the consumer prices in the US are expected to rise 0.2% on month in July, down from the 1.3% rise in the previous month. On a yearly basis, the CPI inflation in the US is expected to cool down to 8.7% for July, lower than June’s reading of 9.1%.

 

* “Markets are reluctant to place large bets heading into the US CPI showdown, as the data will be scrutinised closely for fresh insights on how steeply the US Federal Reserve will raise rates in the coming months,” said fxstreet.com in a report.

 

* Slight profit booking after an over-one-month high also pressured the benchmark COMEX contracts.

 

* A weaker US dollar index and lower yields on the US Treasury bonds lifted the most active December gold contract on COMEX to an over one-month high of $1,817 per ounce on Tuesday post which investors resorted to profit-booking, said analysts.

 

* However, the escalating geopolitical tensions between China and Taiwan are expected to support the safe-haven demand for precious metals. China has been conducting military drills near Taiwan, which led to an escalation in tensions between the two nations.

 

* At 1650 IST, the most-active contracts of bullion were:
   –October gold was down 0.3% at 52,313 rupees per 10 gm on MCX
   –December gold was down 0.3% at $1,806.6 an ounce on COMEX
   –September silver was down 0.4% at 58,540 rupees per kg on MCX
   –-September silver was down 0.4% at $20.39 an ounce on COMEX

 

* Outlook for the evening session:
   –MCX gold seen at 52,300-52,600 rupees
   –COMEX gold seen at $1,800-$1,822
   –MCX silver seen at 58,300-59,100 rupees
   –COMEX silver seen at $20.20-$21.00.

 

End

 

US$1 = 79.52 rupees

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

 

Edited by Shirsha Thakur

 

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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