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Monday, March 27, 2023

India Bullion:MCX gold dn on firm rupee; COMEX flat ahead of PCE data

Informist, Friday, Jan 27, 2023


By Chinmay Mungse


MUMBAI – GOLD contracts traded lower on the Multi Commodity Exchange today as the rupee strengthened against the US dollar. A stronger rupee against the US dollar makes the greenback-denominated commodity cheaper for Indian investors. 


* Benchmark gold contracts traded lower on the COMEX as investors refrained from placing aggressive bets on the yellow metal contracts ahead of the US personal consumption expenditure index data, due to be released later today. 


* The US PCE inflation, US Federal Reserve’s preferred inflation gauge, is expected to cool down to 4.4% on year in December, from November’s reading of 4.7%. 


* However, the bias for gold contracts was slightly negative on the benchmark COMEX today as the US economy grew more than expected in the December quarter. Advanced estimates showed that the US GDP expanded 2.9% in Oct-Dec, which was better than analysts’ estimate of 2.6% growth. 


* “Gold is softening a bit as better-than-expected US GDP data supports the argument that the Fed could still deliver a soft landing,” Edward Moya, senior analyst at OANDA, UK, said. 


* Investors will also take further cues from the Federal Reserve’s rate decision at its meeting next week. The US central bank is widely expected to raise interest rates by 25 basis points.


* At 1705 IST, the most-active contracts of bullion were:

  –February gold was down 0.3% at 56,815 rupees per 10 gm on MCX

  –February gold was flat at $1,930.6 an ounce on COMEX

  –March SILVER was flat at 68,700 rupees per kg on MCX

  –-March silver was down 0.8% at $23.84 an ounce on COMEX


* Outlook for the evening session:

  –MCX gold seen at 56,050–57,100 rupees per 10 gm

  –COMEX gold seen at $1,932–$1,965 an ounce

  –MCX silver seen at 67,750-68,750 rupees per kg

  –COMEX silver seen at $23.67-$24.39 an ounce




US$1 = 81.52 rupees

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


Edited by Vidhi Verma


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Source: Cogencis

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