Bullion rates witnessed variety-bound trading for the duration of the New Year vacation week.
By Tapan Patel
Commodity rates traded mixed final week with most of the commodities in Non-Agri segment kept narrow trading variety on New Year holidays. Bullion rates traded firm on a weaker dollar as the dollar index ended down by .43 per cent to under 90 mark for the week.
Gold rates traded larger ended in green for the fifth week in the trot with spot gold rates at COMEX rose by .79% to $1898 per ounce. Gold rates ended the year with the gains of 25% reporting the greatest annual run in a decade. Gold rates at MCX rose by .34% to Rs. 50244 per 10 grams as stronger rupee capped upside for the duration of the week. The spot rupee appreciated by more than half a % against the dollar for the duration of the week.
Silver rates traded larger with spot silver rates at COMEX rose by more than 2% to $26.40 per ounce for the week. MCX Silver March futures ended about 1% up to Rs. 68120 per KG with recovery in international peers.
Bullion rates witnessed variety-bound trading for the duration of the New Year vacation week. The lack of financial information and the vacation-shortened week has kept investors’ interest down more than New Year squaring off. Prices have recovered from assistance levels maintaining firm trading variety more than financial development issues on worries more than new strain of coronavirus spreading. The weaker dollar also boosted purchasing in valuable metals with stimulus announcements from US. The increasing COIVD-19 circumstances across globe and lockdown measures in UK, Europe and some components of US may well maintain danger premium higher in bullion rates.
We anticipate bullion rates to trade in present variety with a bullish bias for the brief term with COMEX spot gold obtaining robust resistance close to $1920 per ounce and assistance at $1860 per ounce. At MCX, Gold February rates have close to term resistance at Rs. 51200 per 10 grams and assistance at Rs. 49700 per 10 gram. COMEX silver spot has close to term resistance at $27.50 per ounce with assistance at $25 per ounce. MCX Silver March has crucial resistance at Rs. 72000 per KG and assistance at Rs. 67000 per KG.
(Tapan Patel is a Senior Analyst (Commodities) at HDFC Securities. The views expressed by the author are his personal. Please seek the advice of your economic advisor ahead of investing.)