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Friday, February 3, 2023

India Bullion: Up on weak US dlr, bond yields ahead of US CPI data

Informist, Thursday, Jan 12, 2023


By Chinmay Mungse


MUMBAI – GOLD and SILVER contracts on the Multi Commodity Exchange of India and COMEX traded higher today, supported by a subdued dollar and lower yields on the US treasury bonds, ahead of US consumer price index data due later today.


* CPI inflation in the US is expected to be eased in December compared to the previous month. This may necessitate the US Federal Reserve to further slow down the rate hikes, supporting the price sentiment of the precious metal. 


* According to the CME FedWatch tool, 79% of the market participants are expecting the central bank to slow down the pace of interest rate hikes and raise rates by 25 basis points in the February meeting.


* The US CPI, due to be released later today, is expected to show the headline inflation has come down to 6.5% in December from 7.1% in November, according to a Reuters poll.


* “The range between $1,880 and $1,920 per ounce could be pivotal once more, either as a barrier of resistance in the event that inflation disappoints, or a signal of renewed bullishness if a positive report is the catalyst for a break above. Either way, we could see plenty of volatility in the aftermath of the release,” said Craig Erlam, senior analyst at OANDA, UK. 


* At 1707 IST, the most-active contracts of bullion were:

  –February gold was up 0.2% at 55,829 rupees per 10 gm on MCX

  –February gold was up 0.5% at $1,888.8 an ounce on COMEX

  –March silver was up 0.9% at 68,573 rupees per kg on MCX

  –-March silver was up 1.6% at $23.86 an ounce on COMEX


* Outlook for the evening session:

  –MCX gold seen at 55,560–56,200 rupees per 10 gm

  –COMEX gold seen at $1,874–$1,890 an ounce

  –MCX silver seen at 68,100-69,350 rupees per kg

  –COMEX silver seen at $23.50-$24.05 an ounce



US$1 = 81.55 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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