Informist, Friday, Oct 29, 2021
By Chinmay Mungse
MUMBAI – GOLD and SILVER contracts on the Multi Commodity Exchange of India were trading lower today tracking parent contracts on COMEX. Gold and silver contracts on the COMEX were down ahead of the release of personal consumption expenditure price index data later today.
* A stronger dollar also dented gold prices in the international market. A stronger dollar makes commodities priced in the greenback more expensive to hold for international investors.
* In addition, yields on US Treasury bills gathered momentum today, which weighed on the prices of the precious metals.
* Investors are currently eyeing the consumer expenditure data to gauge the US Federal Reserve’s stand on inflation. “If the PCE index is positive for gold, Fed will start tapering sooner than expected,” said Sriram Iyer, a senior analyst at Reliance Securities. “If the data is moderate then Fed will continue to say that the inflation is transitory.”
* Gold prices are expected to rise later in the day as the US advance GDP estimate data for Jul-Sep, which was released on Thursday was below analysts’ forecast. “The GDP stood at 2% while analysts expected it to grow at 2.7%,” said Iyer.
* At 1659 IST, the most active contracts of bullion were:
–December gold down 0.3% at 47,825 rupees per 10 gm on MCX
–December gold down 0.4% at $1,795.9 an ounce on COMEX
–December silver down 0.5% at 64,611 rupees per kg on MCX
–-December silver down 0.3% at $24.04 an ounce on COMEX
* Outlook for the evening session:
–MCX gold seen at 47,800-48,200 rupees
–COMEX gold seen at $1,790-$1,812
–MCX silver seen at 64,000-65,100 rupees
–COMEX silver seen at $23.85-$24.35
End
US$1 = 74.87 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Rajendra Masur
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