Informist, Wednesday, Sep 22, 2021
By Preeti Bhagat
NEW DELHI – GOLD contracts on the Multi Commodity Exchange of India were largely flat today due to rising uncertainty triggered by China’s major property developer–Evergrande’s–debt crisis.
* Evergrande, a Chinese property developer, had borrowed $300 bln and is unable to pay back the debt, raising serious questions about the health of China’s economy. Experts said the property crisis may create a domino effect on China’s economy.
* Prices were also steady as investors were cautious ahead of policy cues from the US Federal Reserve on its timeline for reducing stimulus for the world’s largest economy.
* Investors focussed on any new signals on when a taper may begin. The central bank is also likely to provide an outlook on interest rate hikes.
* “While gold is considered as a hedge against inflation and currency debasement amid widespread stimulus, a hawkish move by the Fed would diminish gold’s appeal,” a report said.
* Meanwhile, gold holdings with SPDR Gold Trust fell 0.1% on Tuesday to 1,000.79 tn, data on the website of the world’s largest gold exchange-traded fund showed.
* At 1801 IST, the most active contracts of bullion were:
–October gold flat at 46,620 rupees per 10 gm on MCX
–December gold down 0.2% at $1,774.6 an ounce on COMEX
–December silver up 0.6% at 60,819 rupees per kg on MCX
–-December silver up 0.4% at $22.69 an ounce on COMEX
* Outlook for the evening session by Angel Commodities:
–MCX gold seen at 46,310-47,050 rupees
–COMEX gold seen at $1,766-$1,790
–MCX silver seen at 59,740-61,350 rupees
–COMEX silver seen at $22.62-$23.06
End
US$1 = 73.87 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Pranav S. Joshi
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