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Tuesday, January 31, 2023

India Bullion: Rises on weak dollar ahead of US PCE inflation data

Informist, Friday, Dec 23, 2022

 

By Chinmay Mungse

 

MUMBAI – GOLD and SILVER contracts were trading higher on the Multi Commodity Exchange of India as well as the COMEX today as the US dollar index softened ahead of the US personal consumption expenditure data, the Federal Reserve’s preferred inflation gauge. 

 

* The US dollar index, which measures the strength of the greenback against a basket of six major currencies, fell 0.2% to 104.8 today. A weaker dollar makes greenback-denominated commodities, such as precious metals, cheaper for holders of other currencies, thus boosting demand. 

 

* Bullion prices jumped, buoyed by a softer dollar index, as US core PCE figures are expected to moderate in November following cooler-than-expected CPI figures last week, Kotak Securities said in a report. 

 

* According to a poll by Dow Jones, core PCE inflation in the US is expected to cool down to 4.6% on year in November, from 5% in the prior month. 

 

* Trade volumes were subdued today ahead of the Christmas and New Year’s holiday season in the international markets. Analysts expect gold prices to trade in a narrow range and trade volume to remain dull. 

 

* At 1812 IST, the most-active contracts of bullion were:

   –February gold was up 0.1% at 54,590 rupees per 10 gm on MCX
   –February gold was up 0.6% at $1,805.6 an ounce on COMEX
   –March silver was up 0.5% at 68,894 rupees per kg on MCX
   –-March silver was up 1.4% at $23.96 an ounce on COMEX

 

* Outlook for the evening session:

   –MCX gold seen at 54,500–55,000 rupees per 10 gm
   –COMEX gold seen at $1,780–$1,810 an ounce
   –MCX silver seen at 68,650-69,350 rupees per kg
   –COMEX silver seen at $23.60-$24.10 an ounce

 

 

 

End

US$1 = 82.85 rupees

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

 

Edited by Tanima Banerjee

 

 

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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