Informist, Thursday, Jan 20, 2022
By Chinmay Mungse
MUMBAI – GOLD contracts on the Multi Commodity Exchange of India were flat today as losses tracking the benchmark COMEX contracts were offset by the rupee’s weakness against the US dollar.
* A weaker rupee makes the greenback-denominated currency expensive for Indian investors.
* Gold contracts on COMEX were trading in the red as investors booked profits after prices hit a two-month high of $1,844 per ounce on the exchange earlier today.
* “Investors flocked to gold contracts due to rising global inflation concerns and escalating geopolitical tension between Russia and Ukraine which boosted the safe-haven appeal of the precious metal,” said Ajay Kedia, research head at Kedia Comtrade.
* “The US warned that Russia may soon launch an attack on Ukraine which boosted buying in gold as a safe-haven asset,” said Tapan Patel, senior analyst at HDFC Securities.
* A rise in the dollar index and higher US Treasury bond yields pressured gold prices in the international market while mounting inflation worries kept the downside to the prices capped.
* At 1823 IST, the most-active contracts of bullion were:
–February gold was flat at 48,403 rupees per 10 gm on MCX
–February gold was down 0.2% at $1,839.3 an ounce on COMEX
–March SILVER was up 0.1% at 64,486 rupees per kg on MCX
–-March silver was down 0.2% at $24.19 an ounce on COMEX
* Outlook for the evening session:
–MCX gold seen at 48,100-48,700 rupees
–COMEX gold seen at $1,820-$1,852
–MCX silver seen at 63,455-65,510 rupees
–COMEX silver seen at $23.68-$24.52
End
US$1 = 74.50 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Maheswaran Parameswaran
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