By Tapan Patel
Commodity costs traded mixed with most of the commodities in the Non-Agro segment traded larger even though crude oil and silver costs ended in red. Gold costs traded larger on reduced bond yields even though base metals traded larger on reduced provide issues and larger demand. Crude oil futures hovered on mixed fundamentals with delayed OPEC choice on output quota.
Gold costs traded larger with spot gold costs at COMEX rose by 1.18% to $1808 per ounce for the week reporting the third weekly achieve. Gold costs at MCX rose by 1.35% at Rs. 47923 per 10 gram. Gold ETF holdings witnessed outflow as holdings at SPDR Gold shares fell to 1040 tonnes from prior week’s 1043 tonnes for the week. The CFTC information showed that dollars managers elevated their net extended positions by 20488 lots last week.
Silver costs ended reduced with spot silver costs at COMEX fell by 1.39% to $26.10 per ounce for the week. MCX Silver September futures ended up by .26% to Rs. 69297 per KG. Silver costs capped upside in mid-week with fall in base metals but later recovered in line with gold and rebound in industrial metals.
Bullion costs traded larger with fall in US treasury yields and weaker dollar more than mixed worldwide cues. The traders and investors weighed US FOMC minutes as couple of of FED officials advocated to preserve the bond obtaining system unchanged till substantial financial recovery. The US 10 year treasury yields fell to 1.36% dipping beneath 1.25% in the course of the week which boosted obtaining in valuable metals regardless of a firm dollar index. Gold costs have been supported by increasing worries more than rapidly spreading of Delta variant virus in some components of the world and slower pace of financial recovery.
We anticipate gold costs to trade sideways to up in the coming week with COMEX spot gold resistance at $1820/1850 per ounce and assistance at $1760 per ounce. At MCX, Gold August costs have close to term resistance at Rs 48,600 per 10 grams and assistance at Rs 47,500 per 10 gram. COMEX silver spot has close to term resistance at $27.20 per ounce with assistance at $25.40 per ounce. MCX Silver September has vital resistance at Rs 71,800 per kg and assistance at Rs 67,000 per kg.
(Tapan Patel is a Senior Analyst (Commodities) at HDFC Securities. The views expressed are the author’s personal. Please seek the advice of your monetary advisor ahead of investing.)