India Bullion: Up on weak rupee, COMEX gains on US-China tensions

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Friday, May 22

 

By Roshni Devi

 

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MUMBAI – Bullion contracts on the Multi Commodity Exchange of rose today due to the rupee’s depreciation against the dollar and tracking gains in parent contracts on COMEX, analysts said. In global markets.

 

A weak rupee makes the import of dollar-denominated like gold expensive. 

 

At 1740 IST, the June gold contract on MCX was up 1.0% at 46,860 rupees per 10 gm, and the July silver contract up 0.9% at 47,764 rupees per kg.

 

On COMEX, the June gold contract was at $1,733 per ounce and the July silver contract at $17.46 per ounce, each up 0.6%.

 

“While it was growing economic optimism that was weighing on its price yesterday, has become considerably more gloomy overnight. One contributing factor are the Chinese government’s plans for a new security law for Hong Kong,” a report by Commerzbank AG said. 

 

China’s push to impose a new national security law, which may suppress the current autonomy of Hong Kong, also led to concerns about further escalation in tensions with the US. Some members of the US Congress have proposed a bill to impose sanctions on Chinese officials if the new law is passed.

 

turned to the safe-haven yellow metal as the US-Chinese tensions climbed,” a report by Investing.com said.

 

China ditched its annual GDP growth guidance citing “great uncertainty” created by pandemic. This is the first time in 25 years that the world’s second largest has not set annual economic growth target.

Silver holdings with iShares Silver Trust surged by 326.43 tn on Thursday to a fresh record high of 14,235.50 tn, according to data on the website of the world’s largest silver exchange-traded fund.

 

A rise in assets is a sign of improving sentiment for the metal.

 

MCX gold is seen at 46,100-47,300 rupees and silver at 46,900-48,050 rupees for the rest of the session, a report by Angel Commodities said.

 

On COMEX, gold is seen at $1,715-$1,738 and silver at $16.65-$17.10.  End

 

US$1 = 75.95 rupees

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

 

Edited by Aditya Sakorkar

 

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Source: Cogencis

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