Informist, Thursday, Sep 8, 2022
By Chinmay Mungse
MUMBAI – GOLD and SILVER contracts on the Multi Commodity Exchange of India and COMEX rose today as the US dollar softened against a basket of major currencies.
* The US dollar index hit an over two-decade high of 110.78 on Wednesday, after which investors resorted to profit booking, which led to a softer US dollar and boosted demand for precious metals.
* However, the upside to bullion prices was capped by rising expectations of an aggressive rate hike by the US Federal Reserve.
* A report on Tuesday showed the US' services purchasing managers' index rose to 56.9% in August. This could prompt the US Fed to continue raising interest rates to curb the high inflation in the country.
* Investors and market participants await fresh cues from US Fed Chair Jerome Powell's speech later today. "Powell may shape expectations about what is to come before this month's policy meeting," said Sriram Iyer, senior analyst at Reliance Securities.
* On Wednesday, US Fed Vice Chair Lael Brainard said interest rates would need to rise further and remain there for some time to provide confidence that inflation was moving down towards the central bank’s 2% target. Brainard's statements spiked up market expectations of a 75-bps rate hike by the US Fed at its Sep 20-21 meeting.
* The European Central Bank's monetary policy meet outcome later in the day could also give direction to prices of precious metals.
* "Gold prices recovered in the evening session gaining above $1700 on a weaker dollar giving respite to the bullion traders. Market players are focusing on ECB meeting outcome over rate decisions. We expect gold prices to trade sideways to up for the day," said Tapan Patel, senior analyst at HDFC Securities.
* At 1633 IST, the most-active contracts of bullion were:
--October gold was up 0.3% at 50,646 rupees per 10 gm on MCX
--December gold was up 0.4% at $1,734.3 an ounce on COMEX
--December silver was up 0.9% at 54,523 rupees per kg on MCX
–-October silver was up 1.5% at $18.44 an ounce on COMEX
* Outlook for the evening session:
--MCX gold seen at 50,330-50,800 rupees
--COMEX gold seen at $1,712-$1,738
--MCX silver seen at 53,650-55,000 rupees
--COMEX silver seen at $18.00-$18.84.
End
US$1 = 79.71 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Avishek Dutta
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. 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.
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Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2022. All rights reserved.
Informist, Thursday, Sep 8, 2022
By Chinmay Mungse
MUMBAI – GOLD and SILVER contracts on the Multi Commodity Exchange of India and COMEX rose today as the US dollar softened against a basket of major currencies.
* The US dollar index hit an over two-decade high of 110.78 on Wednesday, after which investors resorted to profit booking, which led to a softer US dollar and boosted demand for precious metals.
* However, the upside to bullion prices was capped by rising expectations of an aggressive rate hike by the US Federal Reserve.
* A report on Tuesday showed the US' services purchasing managers' index rose to 56.9% in August. This could prompt the US Fed to continue raising interest rates to curb the high inflation in the country.
* Investors and market participants await fresh cues from US Fed Chair Jerome Powell's speech later today. "Powell may shape expectations about what is to come before this month's policy meeting," said Sriram Iyer, senior analyst at Reliance Securities.
* On Wednesday, US Fed Vice Chair Lael Brainard said interest rates would need to rise further and remain there for some time to provide confidence that inflation was moving down towards the central bank’s 2% target. Brainard's statements spiked up market expectations of a 75-bps rate hike by the US Fed at its Sep 20-21 meeting.
* The European Central Bank's monetary policy meet outcome later in the day could also give direction to prices of precious metals.
* "Gold prices recovered in the evening session gaining above $1700 on a weaker dollar giving respite to the bullion traders. Market players are focusing on ECB meeting outcome over rate decisions. We expect gold prices to trade sideways to up for the day," said Tapan Patel, senior analyst at HDFC Securities.
* At 1633 IST, the most-active contracts of bullion were:
--October gold was up 0.3% at 50,646 rupees per 10 gm on MCX
--December gold was up 0.4% at $1,734.3 an ounce on COMEX
--December silver was up 0.9% at 54,523 rupees per kg on MCX
–-October silver was up 1.5% at $18.44 an ounce on COMEX
* Outlook for the evening session:
--MCX gold seen at 50,330-50,800 rupees
--COMEX gold seen at $1,712-$1,738
--MCX silver seen at 53,650-55,000 rupees
--COMEX silver seen at $18.00-$18.84.
End
US$1 = 79.71 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Avishek Dutta
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. 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 feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2022. All rights reserved.
