Informist, Monday, Aug 2, 2021

By Roshni Devi

MUMBAI – Bullion contracts today fell on the Multi Commodity Exchange of India and the COMEX due to hawkish comment by a member of the US Federal Reserve, analysts said.

* The rupee's strength against the dollar also weighed on domestic bullion prices. A firm rupee makes imports of dollar-denominated commodities like GOLD cheaper.

* St. Louis Fed President James Bullard said the US Fed should begin lowering its $120 bln monthly bond purchases this fall and cut them "fairly rapidly" so that the programme concludes in the first months of 2022 and allows for an interest rate hike that year if needed.

* "The strong views of St. Louis Fed President James Bullard on US interest rates hurt gold prices, although prices were sustained by safe demand due to growing COVID-19 infections," Abhishek Bansal, founder of ABans Group, said.

* Traders will eye monthly US jobs data, due for release later this week, to gauge the health of the labour market.

* At 1712 IST, the most active contracts of bullion were:
   --October gold down 0.3% at 47,865 rupees per 10 gm on MCX
   --December gold down 0.5% at $1,811 an ounce on COMEX
   --September SILVER down 0.3% at 67,721 rupees per kg on MCX
   –-September silver down 0.2% at $25.49 an ounce on COMEX

* Outlook for the evening session by Geojit Financial Services:
   --MCX gold seen at 46,850-48,650 rupees

   --COMEX gold seen at $1,790-$1,835
   --MCX silver seen at 66,800-69,200 rupees

   --COMEX silver seen at $24.20-$26.00

End

US$1 = 74.34 rupees

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Rajendra Masur

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