Informist, Thursday, Mar 31, 2022
By Chinmay Mungse
MUMBAI – Gold and silver futures contracts were trading lower today on the Multi Commodity Exchange of India and COMEX as safe-haven demand for the precious metals took a hit with tensions between Russia and Ukraine easing.
* On Wednesday, Russia said it welcomed Ukraine’s decision to set out its demands for an end to the conflict in written form, but said there was no sign of a breakthrough yet. “The pullback in gold prices came as Russia agreed to cut down its military operations around Kyiv and other cities,” said Angel One Commodities in a report.
* Russia’s defence ministry also agreed on a ceasefire in the besieged city of Mariupol to allow civilians to be evacuated. A humanitarian corridor from Mariupol to Zaporizhzhia, through the Russian-controlled port of Berdiansk, would be opened from 0700 GMT, the ministry said Wednesday.
* “The possibility of acceleration in war is less as peace talks are going on. It will have a negative impact on gold prices as the risk premium will decrease,” said Kamlesh Jogi, research analyst at Abans Group.
* A stronger US dollar against a basket of major currencies also weighed on bullion prices in the global market.
* Investors are waiting for US personal consumption expenditure data scheduled for release later today. Analysts expect the core personal consumption expenditure inflation to rise to 5.5% for the year through February.
* “If the inflation is on the higher side, gold prices will gain as the inflation hedge demand of the precious metal will rise,” said Ajay Kedia, research head at Kedia Comtrade.
* At 1620 IST, the most-active contracts of bullion were:
–June GOLD was down 0.3% at 51,623 rupees per 10 gm on MCX
–June gold was down 0.4% at $1,932 an ounce on COMEX
–May SILVER was down 0.6% at 67,016 rupees per kg on MCX
–-May silver was down 0.7% at $24.94 an ounce on COMEX
* Outlook for the evening session:
–MCX gold seen at 51,200-51,800 rupees
–COMEX gold seen at $1,914-$1,938
–MCX silver seen at 66,800-67,300 rupees
–COMEX silver seen at $24.80-$25.10.
End
US$1 = 75.78 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Ashish Shirke
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