By Tapan Patel
Commodity costs traded firm with most of the commodities in the Non-Agro segment kept firm trading variety for the week. Bullion costs traded larger regardless of a stronger dollar when base metals traded mixed hovering in the upper trading variety. Crude oil costs extended rally on stalled OPEC plus output selection.
Gold costs traded larger with spot gold costs at COMEX rose by .33% to $1787 per ounce for the week, gaining for the second straight week. Gold costs at MCX rose by .77% at Rs 47,285 per 10 gram supported by sharp rupee depreciation. The spot rupee continued weekly fall losing .75% against the dollar for the week. Gold ETF holdings at SPDR Gold Shares remained unchanged at 1043 tonnes for the week. The CFTC information showed that dollars managers decreased their net lengthy positions by 3647 lots last week.
Silver costs continued outperforming gold with spot silver costs at COMEX rose by 1.42% to $26.47 per ounce for the week. MCX Silver September futures ended up by 1.83% to Rs 69,118 per KG. Silver costs traded larger supported by a rally in base metals on provide issues and a sturdy demand outlook for industrial metals.
Bullion costs traded strongly for the duration of the week limiting the downside with a fall in US treasury yields and mixed worldwide financial information. The traders and investors had been awaiting important US employment information all through the week to gauge FED stance in the next FOMC meet. The US unemployment price rose by 5.9% in last month against the forecast of 5.6%. The US 10 year treasury yields fell to 1.43% for the duration of the week boosting getting in valuable metals regardless of rally in dollar index. Bullion costs also got assistance from increasing situations of Delta variant of coronavirus in the UK and other components of the world major to partial lockdowns. Bullion costs have recovered from current lows on speculation more than FED tapering signals and inflation worries as market place players are awaiting clarity from FED officials.
We count on gold costs to trade sideways to up in the coming week with COMEX spot gold resistance at $1800/$1820 per ounce and assistance at $1750 per ounce. At MCX, Gold August costs have close to term resistance at Rs. 47800 per 10 grams and assistance at Rs. 46500 per 10 gram. COMEX silver spot has close to term resistance at $27.20 per ounce with assistance at $25.60 per ounce. MCX Silver September has crucial resistance at Rs. 71800 per KG and assistance at Rs. 67000 per KG.
(Tapan Patel is a Senior Analyst (Commodities) at HDFC Securities. The views expressed are the author’s personal. Please seek advice from your monetary advisor prior to investing.)