India Bullion:Slip on MCX, COMEX on profit booking, Brexit vote eyed

Tuesday, Mar 26


By Roshni Devi


MUMBAI – Gold contracts on the Multi Commodity Exchange of India and COMEX fell today as traders booked profits after prices rose to multi-week highs on Monday, analysts said.


At 1706 IST, the April gold contract on MCX was down 0.6% at 32,039 rupees per 10 gm and the same-month contract on COMEX was down 0.7% at $1,314 an ounce.


The rupee's strength against the dollar also weighed on domestic prices of the precious metals. A firm rupee makes the import of dollar-denominated commodities such as gold cheaper.


On Monday, the April gold contract on MCX had hit a two-week high of 32,456 rupees per 10 gm and the same-month contract on COMEX hit a near-one month high of $1,324.50 an ounce following the release of weak economic data in the eurozone and mounting concerns about a recession in the US.


The eurozone's purchasing managers' index for manufacturing slumped to 47.7 in March from 49.4 in February, and US flash purchasing managers' index for manufacturing fell to a 21-month low of 52.5 during the month.


On Friday, the yield on the three-month US Treasury bill ended higher than that on the 10-year Treasury note, the first time since 2007 that the yield curve has inverted. An inverted yield curve is typically an indicator of recession.


In the UK, a vote on Brexit on Wednesday is also keeping markets on the edge. Prime Minister Theresa May does not expect to achieve parliamentary majority for her deal to exit the European Union.


Investors will eye further updates on US-China trade talks, as senior officials from the two sides are scheduled to meet in Beijing later this week.


"Brexit uncertainties, fresh concerns over lower US economic growth, an overly cautious Federal Reserve and uncertainties on the China negotiations continue to encourage risk-averse investors to diversify their portfolios," Walter Pehowich, executive vice-president at Dillon Gage Metals, was quoted as saying on


Worries of a global slowdown also kept base metals on the London Metal Exchange in the red, which in turn kept silver prices depressed today.


The May silver contract on MCX was down 0.7% at 38,338 rupees per kg, and the same-month contract on COMEX was down 0.7% at $15.46 an ounce.



For the rest of the day, gold contracts on MCX are seen trading at 31,980-32,480 rupees. On COMEX, they are seen in a range of $1,311-$1,331.


The silver contract on MCX is seen at 37,800-39,200 rupees, and at $15.20-$15.80 on COMEX.  End


US$1 = 68.86 rupees

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


Edited by Avishek Dutta


Cogencis Tel +91 (22) 6619-0000

Send comments to

This copy was first published on the Cogencis WorkStation

© Cogencis Information Services Ltd. 2019. All rights reserved.

Other News

Govt mulls new financial services ETF; may appoint adviser soon

Friday, May 24 –Govt source: Planning a new ETF for PSU financial services cos–May include PSU insurers in financial services ETF–May invite bids to appoint advisers for fincl svcs ETF By Sagar Sen and Tushar Chakrabarty NEW DELHI – After the huge success of Central Public Sector Enterprises ETF and Bharat 22 ETF, the government is mulling to launch […]

TREND: Equities want decisive mandate to result in decisive measures

Friday, May 24 By Chiranjivi Chakraborty MUMBAI – The equity market's agenda for the new government is straightforward –- be aggressive in dealing with the tight liquidity for non-bank lenders, stem the decline in domestic consumption demand, and recapitalise ailing public sector banks to boost private investment. The market has been enthused by the better-than-expected mandate to the incumbent […]

SEBI Watch: New buyback norms may safeguard NBFC from systemic risks

Friday, May 24 By Chiranjivi Chakraborty Earlier this year, the Securities and Exchange Board of India came under criticism for rejecting a proposed 90-bln-rupee share buyback of Larsen & Toubro on grounds that the debt-to-equity ratio of the consolidated entity exceeded the maximum permissible level. The criticism against the regulator was that it was making an error by […]