Informist, Thursday, Nov 3, 2022
By Chinmay Mungse
MUMBAI – GOLD and SILVER contracts on the Multi Commodity Exchange of India and COMEX fell significantly today, as the US dollar index rose after the US Federal Reserve raised interest rates.
* The US central bank raised interest rates by 75 basis points in its November meeting, in line with market expectations. However, hawkish comments by Fed Chair Jerome Powell tempered expectations that the Fed would slow down its monetary policy tightening in December.
* In his statement after the meeting, Powell said it was "very premature to be thinking about pausing". The Fed chief added that the ultimate level of interest rates would be higher than previously expected.
* Powell's hawkish comments also drove the benchmark 10-year US Treasury bond yield to 4.2%, which further dulled the demand for non-interest yielding bullion.
* "The jump higher in US bond yields hit gold hard and has sent the precious metal tumbling back. Gold has been stuck in a notable downtrend since early March, printing a regular series of lower highs and lower lows," dailyfx.com said in a report.
* Investors and market participants will now focus on US non-farm payrolls data from the Bureau of Labor Statistics, which is scheduled to be released on Friday. On Wednesday, Automatic Data Processing Inc's non-farm payroll data showed the US economy added 239,000 fresh jobs in the labour market.
* According to a poll by Dow Jones, non-farm payrolls in the US are expected to increase by 205,000 in October, lower than September's addition of 263,000 jobs. The unemployment rate in the US is expected to have risen by 0.1% to 3.6% in October.
* "The slower growth in the US labour market and a slight increase in the unemployment rate could provide support to the yellow metal prices," said Veeresh Hiremath, director at Finlit Consulting.
* At 1723 IST, the most-active contracts of bullion were:
--December gold was down 1.2% at 50,007 rupees per 10 gm on MCX
--December gold was down 1.9% at $1,619.3 an ounce on COMEX
--December silver was down 2.8% at 57,110 rupees per kg on MCX
–-December silver was down 3.7% at $18.86 an ounce on COMEX
* Outlook for the evening session:
--MCX gold seen at 49,900–50,200 rupees per 10 gm
--COMEX gold seen at $1,600–$1,630 an ounce
--MCX silver seen at 56,800-57,500 rupees per kg
--COMEX silver seen at $18.70-$19.00 an ounce
End
US$1 = 82.88 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Avishek Dutta
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.
Informist, Thursday, Nov 3, 2022
By Chinmay Mungse
MUMBAI – GOLD and SILVER contracts on the Multi Commodity Exchange of India and COMEX fell significantly today, as the US dollar index rose after the US Federal Reserve raised interest rates.
* The US central bank raised interest rates by 75 basis points in its November meeting, in line with market expectations. However, hawkish comments by Fed Chair Jerome Powell tempered expectations that the Fed would slow down its monetary policy tightening in December.
* In his statement after the meeting, Powell said it was "very premature to be thinking about pausing". The Fed chief added that the ultimate level of interest rates would be higher than previously expected.
* Powell's hawkish comments also drove the benchmark 10-year US Treasury bond yield to 4.2%, which further dulled the demand for non-interest yielding bullion.
* "The jump higher in US bond yields hit gold hard and has sent the precious metal tumbling back. Gold has been stuck in a notable downtrend since early March, printing a regular series of lower highs and lower lows," dailyfx.com said in a report.
* Investors and market participants will now focus on US non-farm payrolls data from the Bureau of Labor Statistics, which is scheduled to be released on Friday. On Wednesday, Automatic Data Processing Inc's non-farm payroll data showed the US economy added 239,000 fresh jobs in the labour market.
* According to a poll by Dow Jones, non-farm payrolls in the US are expected to increase by 205,000 in October, lower than September's addition of 263,000 jobs. The unemployment rate in the US is expected to have risen by 0.1% to 3.6% in October.
* "The slower growth in the US labour market and a slight increase in the unemployment rate could provide support to the yellow metal prices," said Veeresh Hiremath, director at Finlit Consulting.
* At 1723 IST, the most-active contracts of bullion were:
--December gold was down 1.2% at 50,007 rupees per 10 gm on MCX
--December gold was down 1.9% at $1,619.3 an ounce on COMEX
--December silver was down 2.8% at 57,110 rupees per kg on MCX
–-December silver was down 3.7% at $18.86 an ounce on COMEX
* Outlook for the evening session:
--MCX gold seen at 49,900–50,200 rupees per 10 gm
--COMEX gold seen at $1,600–$1,630 an ounce
--MCX silver seen at 56,800-57,500 rupees per kg
--COMEX silver seen at $18.70-$19.00 an ounce
End
US$1 = 82.88 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Avishek Dutta
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.
