Informist, Friday, Jan 7, 2022
By Chinmay Mungse
MUMBAI – GOLD contracts on the Multi Commodity Exchange of India were flat today as gains tracking COMEX were offset by the rupee’s strength against the dollar.
* A stronger rupee against the greenback makes dollar-denominated commodities cheaper for domestic consumers.
* SILVER contracts on MCX were trading lower tracking benchmark COMEX contracts.
* Gold contracts on the COMEX were trading higher after the chief of the World Health Organization said the Omicron variant of the coronavirus cannot be considered mild, which boosted the safe-haven appeal for the precious metal.
* The weakness of the dollar also supported the prices of the precious metal in the international market.
* However, the upside was capped by the US Federal Reserve’s meeting minutes which showed that the central bank could increase interest rates earlier than anticipated.
* “Support from virus concerns and geopolitical risks is countered by Fed’s aggressive monetary tightening stance and weaker investor interest,” said an analyst at Kotak Securities.
* Investors are currently eyeing the Bureau of Labour Statistics’ non-farm employment change data which is to be released later today. Analysts are expecting the non-farm employment to increase for December, which could be bearish for the yellow metal.
* A rise in employment would lower the demand for gold as a safe-haven asset, said analysts.
* At 1654 IST, the most-active contracts of bullion were:
–February gold was flat at 47,425 rupees per 10 gm on MCX
–February gold was up 0.1% at $1,790.3 an ounce on COMEX
–March silver was down 0.2% at 60,320 rupees per kg on MCX
–-March silver was down 0.2% at $22.14 an ounce on COMEX
* Outlook for the evening session:
–MCX gold seen at 47,200-47,850 rupees
–COMEX gold seen at $1,774-$1,814
–MCX silver seen at 59,735-61,585 rupees
–COMEX silver seen at $21.84-$23.19
End
US$1 = 74.31 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Michael Correya
Cogencis news is now Informist. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (11) 4220-1000
Send comments to [email protected]
© Informist Media Pvt. Ltd. 2022. All rights reserved.
Source: Cogencis
