Informist, Wednesday, Jul 27, 2022
By Chinmay Mungse
MUMBAI – GOLD and SILVER contracts rose on the Multi Commodity Exchange of India and the COMEX today, supported by a weakness in the US dollar against a basket of major currencies, ahead of the outcome of the US Federal Reserve’s meeting later today.
* The market has discounted a 75-basis-point interest rate hike from the US Fed as market participants wait for clarity on future rate hikes from the central bank, analysts said.
* “The market has already discounted 75-bps hike in interest rates. The comments from US Fed Chair Jerome Powell over future stance will be crucial for the market,” said Tapan Patel, senior analyst at HDFC Securities.
* The International Monetary Fund cut the global growth forecast, warning that downside risks from high inflation and the Ukraine war were materializing and could push the global economy to the brink of a recession. The IMF’s statement boosted demand for the yellow metal as a safe-haven asset, experts said.
* “Global real GDP growth will slow to 3.2% in 2022 from a forecast of 3.6% issued in April,” the IMF said in an update of its World Economic Outlook.
* At 1643 IST, the most active contracts of bullion were:
–June gold was up 0.1% at 50,641 rupees per 10 gm on MCX
–June gold was up 0.1% at $1,719.4 an ounce on COMEX
–September silver was up 0.6% at 55,062 rupees per kg on MCX
–-September silver was up 1% at $18.72 an ounce on COMEX
* Outlook for the evening session:
–MCX gold seen at 50,465-50,705 rupees
–COMEX gold seen at $1,710-$1,732
–MCX silver seen at 54,440-55,550 rupees
–COMEX silver seen at $18.12-$19.10.
End
US$1 = 79.89 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Vidhi Verma
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