Weekly Gold Review: Local Futures Supported On Weak INR

4 Jun 2022 , 12:46 PM

COMEX Gold futures hit near three week high on continued worries over Russia-Ukraine war but the gains failed to sustain. Rising US interest rates yet again weighed on Gold. The US Dollar tracked benchmark treasury yields after U.S. President Joe Biden stressed that he respects the central banks independence but also affirmed a laser focus on addressing inflation ahead of the November midterm elections. A slight drop in global food prices also played its part in pulling the metal near $1850 per ounce. MCX Gold futures consolidated above Rs 50000 per 10 grams amid a weak undertone in the Indian Rupee. The FAO Food Price Index (FFPI) averaged 157.4 points in May 2022, down 0.9 points (0.6 percent) from April, marking the second consecutive monthly decline, though still 29.2 points (22.8 percent) above its value in the corresponding month last year, the United Nations food agency said on Friday. The drop in May was led by declines in the vegetable oil and dairy price indices, while the sugar price index also fell to a lesser extent. Meanwhile, cereal and meat price indices increased. Powered by Commodity Insights