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India Bullion:MCX gold hits record high tailing COMEX as US CPI cools

Informist, Friday, Jan 13, 2023

 

By Chinmay Mungse

 

MUMBAI – GOLD contracts on the Multi Commodity Exchange of India rose to a lifetime high today tracking gains in the benchmark COMEX contracts.

 

* Gold contracts on COMEX hit a nine-month high today as the consumer price inflation in the US cooled for December, strengthening market expectations of a softer rate hike from the US Federal Reserve. 

 

* The US dollar index slipped after the US CPI data release, and yields on the US Treasury bonds also slipped due to rising expectations of a softer rate hike from the central bank. This boosted the demand for the yellow metal.

 

* The most-active February gold contract on COMEX rose to a nine-month high of $1,912.9 per ounce, while the same-month contract on the MCX hit a lifetime high of 56,245 rupees per 10 gm today. 

 

* According to data from the CME Group’s Fedwatch tool, close to 95% of Fed funds traders expect a 25-basis-point rate hike by the central bank in its February meeting. 

 

* “The US dollar remains depressed near a seven-month low amid growing acceptance that the Fed will soften its hawkish stance amid signs of easing price pressures. A weaker greenback turns out to be a key factor benefitting the dollar-denominated gold price,” fxstreet.com said in a report. 

 

* However, a slight rebound in the US dollar made benchmark SILVER contracts on COMEX more expensive for holders of other currencies, thus dulling the bullion’s demand. 

 

* At 1711 IST, the most-active contracts of bullion were:

  –February gold was up 0.4% at 56,106 rupees per 10 gm on MCX

  –February gold was up 0.4% at $1,905.8 an ounce on COMEX

  –March silver was flat at 68,604 rupees per kg on MCX

  –-March silver was down 0.5% at $23.88 an ounce on COMEX

 

* Outlook for the evening session:

  –MCX gold seen at 55,950–56,350 rupees per 10 gm

  –COMEX gold seen at $1,895–$1,926 an ounce

  –MCX silver seen at 68,200-69,300 rupees per kg

  –COMEX silver seen at $23.55-$24.88 an ounce

 

 

End

US$1 = 81.32 rupees

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

 

Edited by Tanima Banerjee

 

 

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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© Informist Media Pvt. Ltd. 2023. All rights reserved.

 

Source: Cogencis

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