Informist, Wednesday, Jan 4, 2023
By Chinmay Mungse
MUMBAI – GOLD and SILVER contracts on the Multi Commodity Exchange of India and COMEX hit multi-month highs today as the US dollar index and yields on the US treasury bonds weakened, boosting the demand for precious metals.
* Looming fears of recession in the US pushed the yields on the 10-year US Treasury bonds to 3.7%, down 2.4%. While the US dollar index, which measures the strength of the greenback against a basket of major currencies, fell 0.5% to 103.98.
* “Sell-off in the US Treasury bond yields gathered steam and exacerbated the pain in the greenback, allowing the non-yielding gold price to extend its uptrend into the fourth straight session,” fxstreet.com said in a report.
* The most-active February gold contract on the COMEX touched a seven-month high of $1,871.3 per ounce today, while same-month contract on the MCX touched 56,010 rupees per 10 gm, the highest level since August 2020.
* Investors and other market participants are now eyeing minutes of the US Federal Reserve’s December meeting, which will be released early Thursday, for further cues on the interest rate hike pace.
* At 1656 IST, the most-active contracts of bullion were:
–February gold was up 0.8% at 55,982 rupees per 10 gm on MCX
–February gold was up 1.2% at $1,868.4 an ounce on COMEX
–March silver was 1.1% higher at 70,656 rupees per kg on MCX
–-March silver was up 1.6% at $24.62 an ounce on COMEX
* Outlook for the evening session:
–MCX gold seen at 55,720–56,280 rupees per 10 gm
–COMEX gold seen at $1,850–$1,868 an ounce
–MCX silver seen at 69,249-71,790 rupees per kg
–COMEX silver seen at $23.70-$25.05 an ounce
US$1 = 82.80 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Manisha Baxla
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