By Tapan Patel
Commodity costs traded greater with most of the commodities in non-agro segment ended in green for the week supported by weaker dollar. Bullion costs gained on dovish FED whilst crude oil costs rallied on string demand outlook. Base metals traded greater on reduce provide issues and fall in dollar.
Gold costs traded greater with spot gold costs at COMEX ended in green with .67% gains at $1814 per ounce for the week. Gold costs at MCX rose by .66% at Rs 48,032 per 10 gram with flat rupee movement. The spot rupee ended about .01% weaker against the dollar for the week. Gold ETF holdings witnessed inflows as holdings at SPDR Gold Shares rose to 1031 tonnes from the prior week’s 1027 tonnes for the week. The CFTC information showed that income managers decreased their net extended positions by 3004 lots in last week.
Silver costs ended greater with spot silver costs at COMEX rose by 1.25% to $25.49 per ounce for the week. MCX Silver September futures gained by 1.23% to Rs 67,847 per KG. Silver costs traded powerful supported by rally in base metals and weaker dollar outperforming gold for the fourth week. The powerful come back in industrial metals with greater demand prospectus and reduce provide boosted acquiring in silver. The CFTC information showed that income managers decreased their net extended positions by 5058 lots in last week.
Bullion costs traded powerful for the duration of the week following cues from US FED comments post FOMC meeting. The US Federal Reserve Chair Jerome Powell mentioned the central bank wasn’t prepared to consider of raising U.S. interest prices as it was nevertheless focused on acquiring assets to assistance an economy recovering from the coronavirus pandemic. He also refused to speak on the timing of Fed tapering signalling dovish stance. The US 10 year treasury yields ended at 1.24% whilst the dollar index fell by .79% dipping to 4-week lows. The valuable metals may well trade firm with increasing delta variant instances across globe and cautious method from US FED with no hurry in taping bond-acquiring programme.
We count on gold costs to trade sideways to up in the coming week with COMEX spot gold resistance at $1860 per ounce and assistance at $1790 per ounce. At MCX, Gold October costs have close to term resistance at Rs 48,600 per 10 grams and assistance at Rs 47,700 per 10 gram. COMEX silver spot has close to term resistance at $26.30 per ounce with assistance at $24.70 per ounce. MCX Silver September has vital resistance at Rs 69,800 per KG and assistance at Rs 65,800 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 ahead of investing.)