Informist, Friday, Aug 12, 2022
By Chinmay Mungse
MUMBAI – GOLD and SILVER contracts were flat today on the Multi Commodity Exchange of India as losses on the benchmark COMEX contracts were offset by a weaker rupee against the US dollar.
* A weaker rupee makes the dollar-denominated commodity more expensive for Indian investors.
* Benchmark GOLD and SILVER contracts on COMEX fell today, pressured by a stronger US dollar against a basket of major currencies.
* The recent hawkish comments by several US Federal Reserve officials hinted that the central bank may continue with its aggressive monetary policy tightening strategy. San Francisco US Fed President Mary Daly said that a 50 basis-point interest rate hike in September makes sense, though she is open to a bigger rate hike if data warrants.
* Earlier in the week, St. Louis Fed President James Bullard, Chicago Fed President Charles Evans and Minneapolis Fed President Neel Kashkari also advocated for an aggressive interest rate hike despite the inflation in the US cooling down for July.
* “The hawkish outlook allows the US Treasury bond yields to remain elevated near a multi-week high. This continues to act as a headwind for the non-interest yielding yellow metal,” said fxstreet.com in a report.
* A rise in the equity markets due to a cool down in inflation, indicating an improvement in the investor risk sentiments, also dampened the appeal of precious metals.
* At 1623 IST, the most-active contracts of bullion were:
–October gold was flat at 52,316 rupees per 10 gm on MCX
–December gold was down 0.3% at $1,802.1 an ounce on COMEX
–September silver was flat at 58,431 rupees per kg on MCX
–-September silver was down 0.6% at $20.22 an ounce on COMEX
* Outlook for the evening session:
–MCX gold seen at 52,000-52,700 rupees
–COMEX gold seen at $1,770-$1,805
–MCX silver seen at 58,040-58,880 rupees
–COMEX silver seen at $20.15-$20.57.
End
US$1 = 79.65 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Akul Nishant Akhoury
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
Discussion about this post