India Bullion: Down on MCX; flat on COMEX ahead of Fed decision

Informist, Wednesday, May 4, 2022


By Chinmay Mungse


MUMBAI – GOLD and SILVER contracts were in the red today on the Multi Commodity Exchange of India pressured by a stronger rupee against the US dollar.


* A stronger rupee makes the dollar-denominated commodity cheaper for Indian investors.


* The benchmark GOLD and SILVER contracts on the COMEX were flat today, as traders remained cautious ahead of the US Federal Reserve's policy meet conclusion later today.


* Analysts expect the US Fed to raise interest rates by 50 basis points.


* "The US Fed is widely expected to announce a big interest rate hike in an effort to curb high inflation when it hands down its policy decision later in the day. We expect gold prices to trade sideways to down for the day," said Tapan Patel, senior analyst at HDFC Securities.


* The expectations of a hawkish stance on inflation from the US Fed drove the yields on benchmark US Treasury bonds to 3%, the highest level since 2018, which dampened the demand for the precious metal.


* However, a weaker US dollar against a basket of major currencies and fears of a dovish stance by the US Fed supported gold prices in international markets. "A dovish meeting (decision) or escalation in geopolitical tensions or inflation fears could push gold," said Sriram Iyer, senior analyst at Reliance Securities.


* At 1621 IST, the most-active contracts of bullion were:
   –June gold was down 0.3% at 50,667 rupees per 10 gm on MCX
   –June gold was flat at $1,869.3 an ounce on COMEX
   –May silver was down 0.2% at 62,350 rupees per kg on MCX
   –-May silver was down flat at $22.61 an ounce on COMEX


* Outlook for the evening session:
   –MCX gold seen at 50,400-51,000 rupees
   –COMEX gold seen at $1,850-$1,895
   –MCX silver seen at 62,650-63,830 rupees
   –COMEX silver seen at $22.18-$23.22.




US$1 = 76.41 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


© Informist Media Pvt. Ltd. 2022. All rights reserved.

Other News.

Facing negative net worth, Spencer’s Retail to shut loss-making stores

Informist, Thursday, Feb 22, 2024 –Source: Spencer's Retail to shut down all loss-making stores–Source: Spencer's Retail to focus only on Delhi, Kolkata, Hyderabad–Source: Spencer's Retail to shut stores due to accumulated losses–CONTEXT: Spencer's Retail consol net worth (-)5.1 bln rupees end-Dec–Source: Spencer's Retail to right-size ops at corporate level By Avishek Rakshit KOLKATA – Aiming to bounce back to the black […]

Himachal budget ups FY25 pension outgo by 10% on revert to old scheme

Informist, Thursday, Feb 22, 2024 By Krity Ambey NEW DELHI – Himachal Pradesh, in its Budget for 2024-25 (Apr-Mar), has raised the estimate of expenditure towards pension in the next fiscal year to 102.54 bln rupees, up 10% from the revised estimate of 93.18 bln rupees for the current fiscal. This comes on the back of the state's decision to switch to […]

Grasim launches Birla Opus paints, aims to be profitable in 3 years

Informist, Thursday, Feb 22, 2024 –Grasim launches paints business under 'Birla Opus' brand –Grasim Chairman Birla: Entered paints business on infra opportunity –Grasim Chairman Birla: Launching Panipat, Ludhiana, Cheyyar plants –Grasim Chairman Birla:Chamarajanagar plant to be launched by Apr-Jun –Grasim Chairman Birla: Kharagpur plant to be launched by Jan-Mar 2025 –Grasim: Launching services in Punjab, Haryana, Tamil Nadu in Mar –Grasim:To launch […]