By Tapan Patel
Commodity rates traded mixed with bullion rates witnessed promoting for the week capping upside on greater bond yields. Crude oil rates continued upside on provide crunch with output disruptions and greater demand. Base metals traded firm supported by reduce provide even though capping gains on China home giant Evergrande’s debt crisis.
Gold rates traded weak with spot gold rates at COMEX ended .22% down to $1750 per ounce for the week. Gold October futures at MCX fell ended marginal up close to Rs. 45995 per 10 gram supported by rupee depreciation. The spot rupee ended .26% reduce against the dollar for the week. Gold ETF holdings witnessed outflows as holdings at SPDR Gold Shares declined to 993 tonnes from prior week’s 1002 tonnes. The CFTC information showed that dollars managers decreased their net extended positions by 25801 lots in last week.
Silver rates traded steady with spot silver rates at COMEX ended marginal up at $22.42 per ounce for the week. MCX Silver September futures ended flat close to to Rs. 59955 per KG for the week. Silver rates outperformed gold through the week with obtaining from help levels and firm industrial metals more than reduce provide worries. The CFTC information showed that dollars managers decreased their net extended positions by 13178 lots in last week.
Bullion rates remained fluctuated reporting third weekly decline in a row on FED tapering jitters. The valuable metals traded greater in the get started of the week on China’s home industry debt crisis which raised issues more than financial recovery. Bullion rates traded beneath stress paring gains with rally in US bond yields post US FOMC meeting. The US FED signalled to unwind pandemic stimulus by mid-2022 and to raise important interest prices by finish of 2022. The dollar index rose by .14% to 93.33 for the week even though US 10 year treasury yields rose to 1.45% through the week lowering demand for protected haven assets. However, US Fed chairman reiterated inflation worries as inflation was trending above the Fed’s target of 2% per annum.
We anticipate gold rates to trade sideways to down in coming week with COMEX spot gold resistance at $1790 per ounce and help at $1680 per ounce. At MCX, Gold October rates have close to term resistance at Rs. 46600 per 10 grams and help at Rs. 45500 per 10 gram. COMEX silver spot has close to term resistance at $23.60 per ounce with help at $21.50 per ounce. MCX Silver December has essential resistance at Rs. 63000 per KG and help at Rs. 58000 per KG.
(Tapan Patel is a Senior Analyst (Commodities) at HDFC securities. Views expressed are the author’s personal. Please seek advice from your monetary advisor prior to investing.)