India Bullion: MCX, COMEX gold dn on selloff after multi-month highs

Informist, Wednesday, Dec 28, 2022

By Chinmay Mungse

MUMBAI – GOLD futures on the Multi Commodity Exchange of India and COMEX were trading lower today due to a sell-off in the domestic and global markets after the contracts hit multi-month highs on Tuesday. 

* A weak dollar and optimism around higher demand from top consumer China drove the most-active February gold contract on COMEX to a six-month high of $1,841.9 per ounce. The same-month contract on the domestic bourse rose to an 

eight-month high of 55,365 rupees per 10 gm. 

* The dollar pared losses and strengthened against a basket of currencies today, putting pressure on bullion prices. 

* Optimism surrounding reopening of China’s economy also faded, as US officials expressed dissatisfaction around COVID-19 numbers in China. According to reports, the US is considering imposing new COVID-19 restrictions for travellers from China, which dampened the sentiment.  

* “The reason for gold’s latest weakness could be linked to easing optimism surrounding China’s reopening as the US conveys dissatisfaction with the dragon nation’s virus numbers,” said fxstreet.com in a report. 

* SILVER contracts on the MCX and COMEX were in the red today, under pressure from a stronger dollar. 

* At 1656 IST, the most-active contracts of bullion were:

   –February gold was down 0.5% at 54,712 rupees per 10 gm on MCX
   –February gold was down 0.6% at $1,811.3 an ounce on COMEX
   –March silver was down 0.7% at 69,299 rupees per kg on MCX
   –-March silver was down 0.6% at $24.06 an ounce on COMEX

* Outlook for the evening session:

   –MCX gold seen at 54,900–55,300 rupees per 10 gm
   –COMEX gold seen at $1,790–$1,815 an ounce
   –MCX silver seen at 68,800-69,475 rupees per kg
   –COMEX silver seen at $23.60-$24.10 an ounce

End

US$1 = 82.86 rupees

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

Edited by Vandana Hingorani

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