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India Bullion: Up on MCX tracking COMEX on new COVID variant concerns

Informist, Monday, Nov 29, 2021

 

By Chinmay Mungse

 

MUMBAI – Gold contracts were up today on the Multi Commodity Exchange of India and the COMEX as concerns over the spread of a new strain of COVID-19 boosted safe-haven demand for the precious metal.

 

SILVER contracts were also up as they recouped some of Friday's losses, said analysts.

 

* "A dip in global financial markets due to pandemic fears enhanced the demand for GOLD as a safe haven instrument," said Mahesh Kumar, head of commodities market at Abans Group.

 

* With outbreak of the new variant Omicron, several countries including Canada, Brazil, and Russia have imposed travel restrictions. The seven-day average of new COVID-19 cases in the US touched a week high.

 

* If the situation worsens, it could hamper global economic activities and further support demand for gold as a safe-haven asset, said analysts.

 

* "Some rate-hike expectations were priced out again amid news about the new COVID-19 strain on fears that it could choke economic recovery and the US Federal Reserve could tighten its monetary policy too quickly," said Commerzbank AG.

 

* A sharp drop in global bond yields also lent support to gold prices in the international market, added Kumar.

 

* At 1634 IST, the most-active contracts of bullion were:
   –February gold was up 0.6% at 48,240 rupees per 10 gm on the MCX
   –February gold was up 0.6% at $1,798.6 an ounce on the COMEX
   –March silver was up 0.8% at 63,485 rupees per kg on the MCX
   –-March silver was up 1% at $23.35 an ounce on the COMEX

 

* Outlook for the evening session:
   –MCX gold seen at 47,000-48,300 rupees
   –COMEX gold seen at $1,788-$1,831
   –MCX silver seen at 62,200-64,300 rupees
   –COMEX silver seen at $22.90-$24.55

End

 

US$1 = 75.09 rupees

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

 

Edited by Vidhi Verma

 

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.

 

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