Informist, Wednesday, Dec 7, 2022
By Chinmay Mungse
MUMBAI – GOLD contracts on the Multi Commodity Exchange of India were flat today as gains tracking the benchmark contracts on COMEX were offset by a stronger rupee against the US dollar. A stronger rupee makes the greenback-denominated commodity cheaper for Indian investors.
* Benchmark GOLD and SILVER contracts on the COMEX were trading higher today as the dollar slipped against a basket of major currencies, dulling the demand for precious metals.
* Fears of recession in the US boosted the safe-haven demand for precious metals, thus supporting prices on the international bourse.
* Bullion prices are expected to remain in a tight range ahead of the US Producers’ Price Index data, slated for release on Friday. Market participants are also assessing the US Federal Reserve’s stance on interest rate hikes.
* “The US PPI release for November, later in the week, will give further cues on the inflation situation in US as Fed’s stance is based on the inflation print, traders are cautious ahead of the data as seen in the range bound movement in price,” Ravindra Rao, vice-president and head of commodities research, at Kotak Securities, said.
* At 1713 IST, the most-active contracts of bullion were:
–February gold was flat at 53,815 rupees per 10 gm on MCX
–February gold was up 0.2% at $1,786.5 an ounce on COM
–March silver was up 0.6% at 65,785 rupees per kg on MCX
–-March silver was up 1.3% at $22.62 an ounce on COMEX
* Outlook for the evening session:
–MCX gold seen at 53,700–53,970 rupees per 10 gm
–COMEX gold seen at $1,785–$1,805 an ounce
–MCX silver seen at 65,300-65,900 rupees per kg
–COMEX silver seen at $22.10-$22.75 an ounce
End
US$1 = 82.47 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Ranjana Chauhan
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