Informist, Friday, May 7, 2021
By Roshni Devi
MUMBAI – Gold futures on the Multi Commodity Exchange of India were largely flat today, as gains tracking parent GOLD contracts on the COMEX were offset by the rupee's appreciation against the dollar, analysts said.
* On COMEX, gold futures were buoyed by weakness in the US dollar and rising inflation concerns. US' 10-year inflation expectations climbed and the break-even inflation rate reached a new eight-year high of 2.492%.
* "Gold prices are likely to remain firm due to the worsening COVID-19 pandemic situation which supports dovish central bank policy measures," Abhishek Bansal, founder and chairman of Abans Group, said.
* Improved investor interest in SILVER kept prices marginally higher in global markets. Silver holdings with iShares Silver Trust rose by 40.41 tn on Thursday to 17,684.11, data on the website of the world's largest silver exchange-traded fund showed.
* Investors will focus on the US labour market report, due today. "Even if the data turn out to be unexpectedly robust, this is unlikely to prompt any U-turn on the part of the US Fed," a report by Commerzbank AG said. It added that the risk of gold coming under pressure as a result is low.
* At 1644 IST, the most active contracts of bullion were at:
--June gold flat at 47,601 rupees per 10 gm on MCX
--June gold up 0.3% at $1,821 an ounce on COMEX
--July silver down 0.4% at 71,412 rupees per kg on MCX
–-July silver up 0.1% at $27.51 an ounce on COMEX
* Outlook for the evening session:
--MCX gold seen at 47,000-48,100 rupees
--COMEX gold seen at $1,800-$1,835
--MCX silver seen at 70,500-73,400 rupees
--COMEX silver seen at $26.50-$28.30
End
US$1 = 73.51 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Charumathi Sankaran
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