Gold & Silver Update and Outlook - July 14, 2022 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold and silver prices rose on Wednesday as the dollar and the bond yields retreated despite a steep rise in U.S. inflation.

Domestic gold and silver futures also ended with gains on Wednesday, tracking international prices.

Data showed the annual inflation rate in the US accelerated to 9.1% in June of 2022, the highest since November of 1981, from 8.6% in May and above market forecasts of 8.8%.

Core CPI increased 5.9%, slightly below 6% in May, but above forecasts of 5.7%.

A spike in inflation will prompt the U.S. Fed to remain aggressive in its rate hike path.

The Fed is widely seen hiking interest rates by another 75 basis points this month following a similar move in June.

Reflecting current investor sentiments, SPDR Gold Trust ETF said its holding fell 0.17% to 1,019.79 tonnes on Wednesday from 1,021.53 tonnes on Tuesday.

OUTLOOK - INTERNATIONAL & DOMESTIC

International spot and COMEX gold and silver prices have started weaker this Thursday morning in Asian trade as Treasury yields and the dollar rose.

Bullion could remain under pressure amid fears that the Federal Reserve could go for a more aggressive interest rate hike this month, after data showed U.S. inflation sky-rocketed in June.

PPI data from U.S. could also influence the markets this Thursday.

Today's range of COMEX August gold is $1711.90-$1751.70.

Today's range of COMEX September silver is $19.030-$19.600.

Domestic gold futures prices could start flat to weaker on Thursday morning, tracking overseas markets.

A weaker Rupee could cap downside.

Today's range of MCX August gold is 50325-51115.

Domestic silver futures prices could start flat to weaker on Thursday morning, tracking overseas markets.

A weaker Rupee could cap downside.

Today's range of MCX silver September 56495-57565.

Source : Equity Bulls

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