Informist, Thursday, Aug 11, 2022

By Chinmay Mungse

MUMBAI – GOLD contracts on the Multi Commodity Exchange of India were trading higher today tracking overnight gains in the benchmark COMEX contracts.

* A softer US dollar index and lower yields on the US Treasury bonds drove gold prices higher on Wednesday.

* Benchmark GOLD contracts on COMEX were in the red today as lower-than-expected US consumer price inflation data eased the concerns of a recession. The US CPI inflation slowed to 8.5% in July, from an over 40-year high of 9.1% hit in June, and below market forecasts of 8.7%.

* "Gold prices retreated after soft US inflation data and eased recession worries," said Tapan Patel, senior analyst at HDFC Securities.

* Further, hawkish comments from the Minneapolis US Federal Reserve President Neel Kashkari and Chicago US Fed President Charles Evans also weighed on gold prices on the international exchange.

* Kashkari advocated for a 150 basis point interest rate hike in September, November and December. Evans said that inflation is still "unacceptably" high, and the US Fed will likely need to lift its policy rate to 3.25-3.5% this year and to 3.75-4% by the end of next year. The policy rate is currently in the 2.25-2.5% range.

* "Hawkish remarks from US Fed officials dampened hopes of a let-up in aggressive policy tightening after tame inflation data," said Sriram Iyer, senior analyst at Reliance Securities.

* SILVER contracts on the MCX were trading lower tracking losses in the benchmark COMEX contracts. 

* At 1638 IST, the most-active contracts of bullion were:
   --October gold was up 0.3% at 52,370 rupees per 10 gm on MCX
   --December gold was down 0.4% at $1,806 an ounce on COMEX
   --September silver was down 0.2% at 58,845 rupees per kg on MCX
   –-September silver was down 1% at $20.50 an ounce on COMEX

* Outlook for the evening session:
   --MCX gold seen at 52,050-52,440 rupees
   --COMEX gold seen at $1,800-$1,822
   --MCX silver seen at 58,600-59,300 rupees
   --COMEX silver seen at $20.20-$21.20.

End

US$1 = 79.64 rupees

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

Edited by Maheswaran Parameswaran

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.