Happiest Minds QIP Launches at Rs 972.16/share, while Gold Prices Rise on Firm Spot Demand
On July 11, gold prices in the futures market increased by 87, hitting 58,776 per 10 grammes, as speculators opened new positions in response to high spot demand prior to the inflation report. Analysts ascribed the rise in gold prices to market players building up fresh holdings. During the second session, silver held constant at 72,500 per kilogramme.
Spot gold prices in the Delhi markets were unchanged from the previous day’s finish, trading at 59,505 rupees per 10 grammes. According to Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, the strength of the rupee countered the rise in global gold prices.
Gold futures for August 4 delivery were trading higher at 58,862 on the Multi Commodity Exchange (MCX), up 173 or 0.29 percent. In contrast to the previous close of 58,689, the gold futures varied during the session between 58,600 and 58,909. Similar to gold, silver futures for delivery on July 5 saw a little gain of 0.1 percent, reaching 71,368.
Navneet Damani, Senior VP – Commodity Research at Motilal Oswal Financial Services, stressed that this week’s attention would be divided between the incoming US CPI data and the remarks made by Fed members. While core CPI inflation is forecast to stay strong, total inflation is predicted to have decreased. The overall COMEX trend may be between $1910 and $1950, while domestic gold prices may be between 58,350 and 59,200.
Domestic spot gold started at 58,713 rupees per 10 grammes, while domestic spot silver opened at 70,975 rupees per kilogramme, excluding GST, according to the India Bullion and Jewellers Association (IBJA).
A weaker dollar helped gold prices rise internationally on Tuesday as investors anticipated US inflation data that may have an impact on the Federal Reserve’s intentions to raise interest rates. The price of spot gold increased by 0.7 percent to $1,937.70 an ounce, marking the third straight session of increases. Additionally, US gold futures increased 0.7 percent to $1,943.60.
Holders of foreign currencies can now purchase gold at a lower price thanks to the dollar index’s drop to its lowest point since May 11. When interest rates are low, gold tends to perform well, adding to its attractiveness as a safe-haven asset during economic turbulence. According to UBS analyst Giovanni Staunovo, the market’s response to US inflation data hinges on how quickly it is going down. Gold would gain if inflation unexpectedly showed a negative trend since it would signal an earlier conclusion to the Fed’s rate hike cycle. Additionally, the precious metal is probably being supported by continuous central bank purchases of gold.
Despite the Fed’s assertion that the tightening cycle is about to come to an end, gold investors are being cautious ahead of Wednesday’s US inflation data. Bullion is now supported by a weaker dollar, according to Matt Simpson, senior market analyst at City Index, but market players are reluctant to commit much.
Although several members of the central bank agree with Fed Chair Jerome Powell that additional rate increases are required to contain inflation, last week’s weaker-than-expected PMI and employment data from the US hurt the currency and helped safe-haven assets rise.
Gold prices increased little, according to Motilal Oswal’s Damani, as US rates and the dollar index fell. Due to the impending US inflation data, which may affect the Federal Reserve’s rate policy trajectory, market players maintained a cautious posture. Neel Kashkari and Loretta Mester are just a couple of the Fed officials who have booked appearances this week.
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