Informist, Tuesday, Dec 21, 2021
By Chinmay Mungse
MUMBAI – GOLD contracts on the Multi Commodity Exchange of India were flat today because strength in the rupee against the dollar was offset by rising Omicron cases across the world.
* A stronger rupee against the greenback makes the dollar-denominated commodity less expensive for domestic consumers, which weighed on prices.
* However, prices gained support from rising cases of the Omicron variant of COVID-19 in several parts of the world, which increased demand for the safe-haven asset.
* British Prime Minister Boris Johnson said on Monday he would tighten curbs to slow the spread of the Omicron variant if needed, after the Netherlands began a fourth lockdown and as other European nations consider restrictions during Christmas.
* “While global equities slipped lower on worries of stricter curbs, the safe-haven gold remained steady,” Angel One Commodities said in a report. “Uncertainties around the globe and mounting inflation concerns tend to support gold.”
* A drop in the dollar index also supported gold prices in the international market.
* Demand for physical gold in India showed a modest improvement this week as some buyers rushed to stores anticipating a further rise in domestic prices, while customers in other Asian hubs started bullion shopping for Christmas, said analysts.
* However, a hawkish approach by the US Federal Reserve, Bank of England and Central Bank of Russia to tackle rising inflation dampened market sentiments, keeping a check on bullion prices.
* SILVER contracts on the MCX were trading higher, tracking gains in benchmark COMEX contracts.
* At 1955 IST, the most-active contracts of bullion were:
–February gold was flat at 48,203 rupees per 10 gm on MCX
–February gold was flat at $1,794.7 an ounce on COMEX
–March silver was up 0.8% at 61,935 rupees per kg on MCX
–-March silver was up 1.3% at $22.58 an ounce on COMEX
* Outlook for the evening session:
–MCX gold seen at 48,150-48,400 rupees
–COMEX gold seen at $1,782-$1,800
–MCX silver seen at 60,700-62,600 rupees
–COMEX silver seen at $21.84-$23.00. End
US$1 = 75.60 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Avishek Dutta
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Source: Cogencis
