Informist, Tuesday, Oct 19, 2021
By Sayantan Sarkar
MUMBAI – GOLD and SILVER contracts on the Multi Commodity Exchange of India rose today, tracking COMEX as the dollar weakened against major currencies.
* The December silver contract on MCX had hit an over one-month high of 65,250 rupees per kg, while the same-month contract on COMEX had also risen to $24.18 per ounce, its highest level since Sep 7 earlier today.
* In international markets, the dollar’s weakness makes bullion cheaper for holders of other currencies and increases demand.
* “The weak US industrial production data are likely to have played a role in the depreciation of the US dollar; they were down in September – partly because of Hurricane Ida – and fell significantly short of expectations,” Commerzbank AG said in a report.
* Gold prices have been declining for the last few weeks as investors were concerned about the US Federal Reserve planning to taper asset purchases from November, which has been weighing on sentiment for the metal.
* Meanwhile, the World Gold Council said today that gold demand in India is expected to face short-term challenges due to declining household savings rate and farm wages, which are the main drivers for consumption in the country.
* The council also said that gold demand in India is expected to pick up pace next year due to robust economic growth and pent-up demand.
* Silver assets with iShares Silver Trust rose by 7.2 tn on Monday to 17,224.59 tn, as per data on the website of the world’s largest silver exchange-traded fund.
* At 1945, the most active contracts of bullion were:
–December gold up 0.3% at 47,442 rupees per 10 gm on MCX
–December gold up 0.9% at $1,780.8 an ounce on COMEX
–December silver up 2.9% at 65,083 rupees per kg on MCX
–-December silver up 3.3% at $24.03 an ounce on COMEX
* Outlook for the evening session:
–MCX gold seen at 46,620-47,930 rupees
–COMEX gold seen at $1,751-$1,787
–MCX silver seen at 62,600-64,840 rupees
–COMEX silver seen at $22.97-$24.30
End
*
US$1 = 75.34 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Maheswaran Parameswaran
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Source: Cogencis
