Informist, Monday, Dec 6, 2021
By Chinmay Mungse
MUMBAI – GOLD contracts on the Multi Commodity Exchange of India were trading up today as a softer rupee against the dollar lent support to gold prices in the domestic market.
* SILVER contracts on MCX were down today tracking losses in the benchmark contracts on COMEX.
* Futures contracts of gold and silver on COMEX were trading a tad down today as hawkish comments from the US Federal Reserve Chair Jerome Powell dampened market sentiment.
* Addressing the US Senate Banking Committee, Powell hinted that the Fed may consider wrapping up its asset purchase tapering sooner than previously anticipated. Powell also said the rise in inflation was no longer transitory and the Fed may consider tightening its ultra-accommodative monetary policy quicker than investors expected.
* “Remarks from the Fed chairperson supported the dollar index and hence, led to a fall in gold prices,” said Ajay Kedia, research head at Kedia Capital.
* However, the downside to the prices was capped by concern about a rise in cases of the Omicron variant of coronavirus. “Pressures on global equity market are also supporting gold prices,” said Manoj Jain, commodity research head at Prithvi Finmart.
* Speculation about Chinese real-estate giant Evergrande Group defaulting on its loans has boosted the safe-haven demand for gold, said analysts.
* Meanwhile, gold holdings with SPDR Gold Trust fell by 1.79 tn on Friday to 984.38 tn, according to data on the website of the world’s largest gold exchange-traded fund. Silver assets with iShares Silver Trust fell by 54.67 tn to 16,945.28 tn on Friday. A drop in holdings is considered a sign of waning interest for the precious metals.
* At 1714 IST, the most-active contracts of bullion were:
–February gold was up 0.1% at 47,969 rupees per 10 gm on MCX
–February gold was down 0.1% at $1,782.9 an ounce on COMEX
–March silver was down 0.2% at 61,404 rupees per kg on MCX
–-March silver was down 0.5% at $22.4 an ounce on COMEX
* Outlook for the evening session:
–MCX gold seen at 47,600-48,200 rupees
–COMEX gold seen at $1,770-$1,800
–MCX silver seen at 60,900-61,800 rupees
–COMEX silver seen at $21.90-$22.60
End
US$1 = 75.42 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Michael Correya
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Source: Cogencis
