Informist, Wednesday, Oct 20, 2021
By Chinmay Mungse
MUMBAI – GOLD and SILVER contracts on the Multi Commodity Exchange of India were up today tracking gains in the benchmark contracts on the COMEX, as concerns about rising inflation in the US and other parts of the world boosted sentiment despite the dollar gaining ground.
* Rising inflation in the US, coupled with speculation that the US Federal Reserve may not taper asset purchases to the extent earlier anticipated, have supported gold prices, said Sriram Iyer, senior analyst at Reliance Securities.
* Higher energy prices have raised concerns about rising inflation in the US and other parts of the world. Safe-haven assets such as gold are used as a hedge against rising inflation.
* The US Fed had earlier hinted that the scale of asset tapering may not be huge, whenever the central bank begins tightening its monetary policy. This had eased some concerns and further supported prices of the yellow metal.
* “Interestingly, the gold market is ignoring the fact that yields on ten-year US Treasuries climbed to a five-month high of 1.67% for a time this morning,” Commerzbank AG said.
* In the domestic market, demand for gold jewellery is likely to remain robust in the coming weeks due to the festival season, experts said.
* Meanwhile, silver assets with iShares Silver Trust fell by 129.57 tn on Tuesday to 17,095.02 tn, as per data on the website of the world’s largest silver exchange-traded fund.
* At 1645 IST, the most active contracts of bullion were:
–December gold up 0.4% at 47,458 rupees per 10 gm on MCX
–December gold up 0.6% at $1,781.3 an ounce on COMEX
–December silver up 0.4% at 64,728 rupees per kg on MCX
–-December silver up 0.5% at $24 an ounce on COMEX
* Outlook for the evening session by HDFC Securities:
–MCX gold seen at 47,000-47,600 rupees
–COMEX gold seen at $1,760-$1,790
–MCX silver seen at 63,000-65,800 rupees
–COMEX silver seen at $23.10-$24.20
End
US$1 = 74.87 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Pranav S. Joshi
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