Informist, Thursday, Jan 5, 2023
By Chinmay Mungse
MUMBAI – GOLD and SILVER contracts on the Multi Commodity Exchange and COMEX fell slightly today due to slightly hawkish views of the US Federal Reserve.
* Minutes of the Fed’s Dec 13-14 meeting indicated that officials were concerned that markets were underestimating their resolve in tackling inflation. The minutes emphasised that policymakers see rates continuing to rise and staying there for “some time”.
* However, the losses were cushioned as US Fed officials agreed that the central bank should slow the pace of its aggressive interest rate increases.
* “The prospect of smaller interest rate hikes by the Fed weighed on the dollar and the US Treasury yields and lent support to gold,” Sriram Iyer, senior analyst at Reliance Securities, said.
* Market participants are now awaiting Friday’s US jobs report for further cues on how the economy is faring. A survey by Bloomberg estimated an increase of 200,000 in US non-farm payrolls in December, which would be the lowest in two years, following an increase of 263,000 in November.
* At 1701 IST, the most-active contracts of bullion were:
–February gold was down 0.3% at 55,570 rupees per 10 gm on MCX
–February gold was down 0.2% at $1,856 an ounce on COMEX
–March silver was down 1.2% at 68,517 rupees per kg on MCX
–-March silver was down 1.1% at $23.71 an ounce on COMEX
* Outlook for the evening session:
–MCX gold seen at 54,500–56,200 rupees per 10 gm
–COMEX gold seen at $1,847–$1,871 an ounce
–MCX silver seen at 67,300-69,930 rupees per kg
–COMEX silver seen at $23.53-$24.19 an ounce
US$1 = 82.56 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Avishek Dutta
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