Informist, Thursday, Apr 28, 2022
By Chinmay Mungse
MUMBAI – GOLD contracts on the Multi Commodity Exchange of India and COMEX were flat today, as losses due to a stronger dollar against a basket of major currencies were offset by fears of higher inflation.
* The US dollar index rose to 103.69 today, a level last seen in December 2002, due to expectations that the US Federal Reserve might raise interest rates by a further 50 basis points at its meeting in May.
* Meanwhile, the fears of higher inflation kept the inflation hedge demand for the precious metal lifted, said analysts. The core US personal consumption expenditure data, due for release on Friday, is expected to show higher inflation in the US, thus supporting bullion prices.
* “The core PCE inflation in the US is expected to grow at 5.5% on year, thus boosting the demand for the precious metal,” said Sriram Iyer, senior analyst at Reliance Securities.
* Further, the US GDP data, which will release later today, is also expected to show a smaller jump in the first quarter. Analysts expect the US GDP to grow by around 1.1% for the quarter, which is drastically lower than previous estimates.
* “Slower GDP growth is likely to be supportive for the yellow metal prices in the international markets,” said Ajay Kedia, research head at Kedia Comtrade.
* The US weekly jobless claims data, also releasing later today, is expected to show lesser number of Americans filing for jobless claims. Analysts expect the jobless claims numbers to fall to 180,000 from 184,000 last week.
* “A slightly stronger job market and higher inflation would prompt the US Fed to hike interest rates by 50 bps in its May meeting,” added Iyer. “It is important to see the statement that US Fed Chairman Powell gives next week about the future rate hike paths.”
* At 1643 IST, the most-active contracts of bullion were:
–June gold was flat at 51,205 rupees per 10 gm on MCX
–June gold was flat at $1,888.4 an ounce on COMEX
–May SILVER was down 1.1% at 63,954 rupees per kg on MCX
–-May silver was down 1% at $23.25 an ounce on COMEX
* Outlook for the evening session:
–MCX gold seen at 50,400-51,300 rupees
–COMEX gold seen at $1,870-$1,900
–MCX silver seen at 64,353-65,163 rupees
–COMEX silver seen at $23.11-$23.57.
End
US$1 = 76.48 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Namrata Rao
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
