Informist, Wednesday, Dec 8, 2021
By Chinmay Mungse
MUMBAI – GOLD contracts rose on the Multi Commodity Exchange of India and COMEX today as markets consolidated ahead of the US Consumer Price Index data, scheduled to be released on Friday.
* SILVER contracts fell on the MCX tracking losses in the benchmark contracts on COMEX.
* Investors believe the CPI data could influence the US Federal Reserve’s decision at its policy meeting scheduled on Dec 14-15.
* “The CPI numbers are expected to be high pressuring the US dollar and lend a support to the gold prices,” said Sriram Iyer, senior analyst at Reliance Securities. Rising inflation lends support to gold prices as the yellow metal is used as a hedge against the former.
* A weakness in the US dollar and the treasury bills also lent support to gold prices. “Benchmark 10-year and 30-year US treasury yields pulled back from their one-week highs hit on Tuesday boosting bullion’s appeal,” said SMC Investments and Advisors Ltd in a report.
* Bullion prices also got a boost after US President Joe Biden warned his Russian counterpart Vladimir Putin against invading Ukraine and threatened countermeasures. “Gold is currently profiting from the escalating geopolitical tensions over Ukraine,” said Commerzbank AG in a report. “Biden’s statement presumably generated demand for gold as a safe haven.”
* At 1808 IST, the most-active contracts of bullion were:
–February gold was up 0.1% at 48,114 rupees per 10 gm on MCX
–February gold was up 0.1% at $1,786 an ounce on COMEX
–March silver was down 0.3% at 61,640 rupees per kg on MCX
–-March silver was down 0.5% at $22.40 an ounce on COMEX
* Outlook for the evening session:
–MCX gold seen at 47,600-48,350 rupees
–COMEX gold seen at $1,760-$1,810
–MCX silver seen at 60,800-63,200 rupees
–COMEX silver seen at $22.10-$22.90.
End
US$1 = 75.45 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Aditya Sakorkar
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