Informist, Tuesday, Feb 8, 2022
By Chinmay Mungse
MUMBAI – GOLD contacts on the Multi Commodity Exchange were flat today as losses tracking the benchmark COMEX contracts were offset by the rupee’s weakness against the dollar.
* A weaker rupee makes the commodities priced in the greenback more expensive for the Indian investors.
* Gold contracts on COMEX were trading lower today as the US dollar index and Treasury bond yields strengthened, dulling the appeal of the precious metal.
* Yields on the benchmark 10-year US Treasury yields surged to their highest levels since December 2019 thus, pressuring bullion prices in the international market, said analysts.
* However, the downside was capped by higher inflation in the US, which boosted the inflation hedge demand of the precious metal. With the US consumer price index data coming on Thursday, analysts expect the inflation to remain on the higher side, providing support to bullion prices.
* “The previous CPI reading showed a 7% yearly gain to December, the highest inflation spike since 1982. The forecast this time is for 7.3%, which could still mark a 40-year-high,” said Sriram Iyer, senior analyst at Reliance Securities.
* Geopolitical tensions between Ukraine and Russia continued to boost the safe-haven appeal of bullion. “US President Biden has threatened to bring an end to the Nord Stream 2 gas pipeline if Russia invades Ukraine,” said Commerzbank AG.
* At 1713 IST, the most-active contracts of bullion were:
–April gold was flat at 48,224 rupees per 10 gm on MCX
–April gold was down 0.2% at $1,818.6 an ounce on COMEX
–March SILVER was down 0.4% at 61,760 rupees per kg on MCX
–-March silver was down 1% at $22.55 an ounce on COMEX
* Outlook for the evening session:
–MCX gold seen at 48,000-48,550 rupees
–COMEX gold seen at $1,811-$1,835
–MCX silver seen at 61,070-62,568 rupees
–COMEX silver seen at $21.83-$23.05
End
US$1 = 74.74 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