Informist, Wednesday, Nov 3, 2021
Chinmay Mungse
MUMBAI – GOLD contracts on the Multi Commodity Exchange of India and COMEX fell today as investors waited for the outcome of the US Federal Reserve's policy meeting later today.
* Strength in equity markets in the US and other parts of the world has also boosted sentiment for riskier assets such as stocks, while limiting demand for the yellow metal.
* The US Fed committee will assess how the central bank plans to combat rising inflation and ease worries over economic recovery.
* "The market expectations of a sooner rate hike has pressured bullion prices," said Tapan Patel, senior analyst at HDFC Securities. "The US Fed is likely to begin paring its monthly asset purchases by $15 billion every month till mid-2022." he added
* "The anticipation of US Fed's decision is the major factor moving the market today," said Sriram Iyer, senior analyst at Reliance Securities. "We expect a sell-off in gold if the US Fed is extremely hawkish."
* A stronger rupee against the dollar also weighed on gold prices in the domestic market. A stronger rupee makes commodities priced in the greenback cheaper.
* At 1634 IST, the most active contracts of bullion were:
--December gold down 0.5% at 47,407 rupees per 10 gm on MCX
--December gold down 0.3% at $1,783.8 an ounce on COMEX
--December SILVER up 0.2% at 63,330 rupees per kg on MCX
–-December silver up 0.5% at $23.62 an ounce on COMEX
* Outlook for the evening session:
--MCX gold seen at 47,240-47,730 rupees
--COMEX gold seen at $1,765-$1,795
--MCX silver seen at 62,800-64,000 rupees
--COMEX silver seen at $23.40-$24.65
End
US$1 = 74.45 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Snigdha Kuttikat
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