Informist, Tuesday, Jan 11, 2022
By Chinmay Mungse
MUMBAI – GOLD and SILVER contracts on the Multi Commodity Exchange of India were trading higher today, tracking COMEX as weakness in the US dollar against a basket of major currencies lifted demand for the metals.
* “The weakness in the dollar index coupled with the rising concerns related to the Omicron variant of COVID-19 virus have boosted the demand for gold in the international market,” said Ajay Kedia, research head at Kedia Comtrade.
* Investors are currently eyeing the US Federal Reserve Chair Jerome Powell’s testimony later today. In the minutes published last week, Fed had indicated that interest rates might be hiked as soon as the central bank wraps up its asset purchase tapering program in March.
* “A rate hike in March has been fully priced in since last week’s publication of the hawkish Fed meeting minutes,” said Commerzbank AG. However, analysts expect Powell to provide clarity on the timeline for interest rate hikes.
* Investors are also focussing on the US consumer price index data releasing on Wednesday. “US core CPI is expected to have risen to its highest in decades at 5.4% in December, up from 4.9% in the prior month,” said Sriram Iyer, senior analyst at Reliance Securities. “A higher CPI could reinforce expectations of faster rate hikes by the US Fed.”
* At 1731 IST, the most-active contracts of bullion were:
–February gold was up 0.1% at 47,521 rupees per 10 gm on MCX
–February gold was up 0.4% at $1,807 an ounce on COMEX
–March SILVER was up 0.2% at 60,780 rupees per kg on MCX
–-March silver was up 0.4% at $22.57 an ounce on COMEX
* Outlook for the evening session:
–MCX gold seen at 47,000-47,600 rupees
–COMEX gold seen at $1,780-$1,820
–MCX silver seen at 60,060-61,050 rupees
–COMEX silver seen at $22.26-$22.74
End
US$1 = 73.90 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Maheswaran Parameswaran
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