Informist, Monday, Jul 26, 2021

By Roshni Devi

MUMBAI – Bullion contracts on the Multi Commodity Exchange of India and COMEX rose today due to improved haven demand for the precious metals, analysts said.

* A drop in US bond yields and concerns about a persistent rise in Delta variant cases of COVID-19 pushed up prices, said Abhishek Bansal, founder and chairman of Abans Group.

* The rise of the Delta variant of COVID-19 in Indonesia, Thailand and Malaysia have led to concerns over global economic recovery as many countries have extended or imposed restrictions to curb the spread of the virus.

* The rupee's weakness against the dollar supported domestic bullion prices. A weak rupee makes the import of dollar-denominated commodities like GOLD expensive.

* Investors will monitor the US Federal Reserve's interest rate announcement, followed by Chair Jerome Powell's press conference, to see whether the Fed will signal the start of tapering its bond purchases.

* "The pressure on the Fed to begin tightening its monetary policy sooner rather than later has eased somewhat of late," a report by Commerzbank AG said. It added that if the Fed's statement contains no indication that tapering will commence in the near future, and if Powell makes no remarks to this effect, it may weaken the dollar and support gold. 

* At 1845 IST, the most active contracts of bullion were:
   --August gold up 0.1% at 47,555 rupees per 10 gm on MCX
   --August gold up 0.7% at $1,803 an ounce on COMEX
   --September SILVER up 0.2% at 67,171 rupees per kg on MCX
   –-September silver up 0.3% at $25.29 an ounce on COMEX

* Outlook for the evening session by Angel Broking:
   --MCX gold seen at 47,250-48,230 rupees

   --COMEX gold seen at $1,794-$1,834
   --MCX silver seen at 66,340-68,580 rupees

   --COMEX silver seen at $25.14-$25.77

End

US$1 = 74.4175 rupees

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

Edited by Snigdha Kuttikat

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