Informist, Wednesday, Nov 17, 2021
By Sayantan Sarkar
MUMBAI – GOLD and SILVER prices in India and abroad shrugged off overnight losses and rose today as inflation in the UK surged, boosting demand for precious metals.
* Inflation in the UK rose to its highest level since 2011 in October, according to reports, putting more pressure on the Bank of England to tighten its monetary policy in the coming weeks.
* Bullion prices have benefited from high inflation across the world, especially in the US, where it hit an over 30-year high in October. Demand for assets such as gold rises as investors use the metal to hedge against rising prices.
* Prices had declined on Tuesday after data showed retail sales in the US in October rose 1.7%, despite higher prices and supply chain issues. This capped further upside in prices of gold, said analysts.
* After the release of the retail sales data in the US, the dollar and yields on Treasury bills rose sharply, which also weighed on sentiment in the bullion market earlier today.
* At 1713 IST, the most active contracts of bullion were:
–December gold was up 0.2% at 49,115 rupees per 10 gm on Multi Commodity Exchange of India
–December gold was up 0.6% at $1,862.1 an ounce on COMEX
–December silver was up 0.5% at 66,535 rupees per kg on MCX
–-December silver was up 0.7% at $25.14 an ounce on COMEX
* Outlook for the evening session:
–MCX gold seen at 48,889-49,850 rupees
–COMEX gold seen at $1,843.1-$1,887.5
–MCX silver seen at 65,858-67,970 rupees
–COMEX silver seen at $24.65-$25.90
End
US$1 = 74.27 rupees
Edited by Avishek Dutta
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