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India Bullion: Up as US bond yields slip on slow Fed rate hike bets

Informist, Wednesday, Jan 11, 2023


By Chinmay Mungse


MUMBAI – GOLD and SILVER contracts on the Multi Commodity Exchange of India and COMEX traded higher today as US treasury bond yields slipped on expectations of slower rate hikes from the US Federal Reserve in its upcoming monetary policy meetings. 


* The US Fed had raised interest rates sharply throughout 2022 to curb high inflation. After four straight hikes of 75 basis points, the central bank slowed the pace of hikes in December, when it raised rates by 50 bps. 


* The optimism that the US Fed is likely to further slow down the pace of interest rate hikes buoyed sentiment in the gold market. 


* Hawkish statements by US Fed officials Raphael Bostic and Mary Daly also failed to limit the gains in precious metals. “Gold prices are holding near-recent highs as traders grow optimistic that the Fed won’t be able to follow through with its hawkish threats,” Edward Moya, senior analyst at OANDA, UK, said. 


* US Fed Chair Jerome Powell also refrained from giving hints on the monetary policy outlook in his speech on Tuesday. Powell said stabilising prices requires making tough decisions that can be unpopular politically. 


* Investors and market participants are now eyeing the US consumer price index data, due on Thursday. According to a poll by Dow Jones, CPI inflation in the US is likely to cool down to 6.5% on year in December, down from November’s reading of 7.1% on year growth. 


* At 1738 IST, the most-active contracts of bullion were:

  –February gold was up 0.3% at 55,865 rupees per 10 gm on MCX

  –February gold was up 0.6% at $1,887.2 an ounce on COMEX

  –March silver was up 1% at 69,021 rupees per kg on MCX

  –-March silver was up 1.6% at $24.04 an ounce on COMEX


* Outlook for the evening session:

  –MCX gold seen at 55,560–56,000 rupees per 10 gm

  –COMEX gold seen at $1,874–$1,882 an ounce

  –MCX silver seen at 68,500-69,300 rupees per kg

  –COMEX silver seen at $23.64-$24.20 an ounce



US$1 = 81.58 rupees

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


Edited by Manisha Baxla


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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Source: Cogencis

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