India Bullion:Up on MCX, COMEX on expectation of slower Fed rate hikes

Informist, Tuesday, Jan 24, 2023

By Chinmay Mungse

MUMBAI – GOLD and SILVER contracts on the Multi Commodity Exchange of India and COMEX rose today as markets keenly await more economic data from the US, which may provide further evidence of the economy losing momentum under higher interest rates. This, investors expect, could lead to the US Fed slowing down its rate hikes

* Traders are pricing in a 99% chance of a 25-basis-point interest rate hike from the US Federal Reserve at its monetary policy meeting next week, according to the CME FedWatch tool.

* “Gold prices edged higher as investors looked ahead to more economic data from the US amid expectations of a slower pace of interest rate hikes,” said Navneet Damani, senior vice-president and head research – commodities and currencies at Motilal Oswal Financial Services. “Expectations of slower rate hikes have also dented the dollar and the US Treasury yields, further benefitting the safe-haven asset.”

* US GDP data for Oct-Dec, scheduled to be released on Thursday, will be keenly eyed by investors and market participants for further impetus to bullion prices. Economists polled by Dow Jones estimate that the US GDP grew 2.8% in the December quarter. 

* Personal consumption expenditure index data, due on Friday, is also expected to provide direction to gold prices. According to a poll by Dow Jones, core personal consumption expenditure inflation in the US is expected to have eased to 4.4% on year in December from 4.7% in November.

* At 1710 IST, the most-active contracts of bullion were:

  –February gold was up 0.4% at 57,030 rupees per 10 gm on MCX

  –February gold was up 0.5% at $1,937.2 an ounce on COMEX

  –March silver was up 0.9% at 68,592 rupees per kg on MCX

  –-March silver was up 0.9% at $23.79 an ounce on COMEX

* Outlook for the evening session:

  –MCX gold seen at 56,800–57,500 rupees per 10 gm

  –COMEX gold seen at $1,929–$1,946 an ounce

  –MCX silver seen at 68,100-69,000 rupees per kg

  –COMEX silver seen at $23.48-$23.86 an ounce

End

US$1 = 81.72 rupees

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

Edited by Avishek Dutta

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.

Informist Media Tel +91 (22) 6985-4000

Send comments to [email protected]

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

Source: Cogencis