By Tapan Patel
Commodity costs traded mixed with gold costs ending in green although the rest of the commodities in the non-agro segment witnessed promoting in the course of the prior week. Crude oil costs reported the worst week in months on expectations of OPEC deal and weaker demand although base metals hovered in variety with mixed fundamentals.
Gold costs traded larger with spot gold costs at COMEX ended .21% up to $1812 per ounce for the week managing to hold 4-week gains on the trot. Gold costs at MCX rose by .27% at Rs 48,053 per 10 gram regardless of of rupee appreciation. The spot rupee ended about 8 paise stronger against the dollar for the week. Gold ETF holdings continued to witness outflow as holdings at SPDR Gold Shares fell to 1028.5 tonnes from the prior week’s 1040 tonnes for the week. The CFTC information showed that dollars managers elevated their net lengthy positions by 9985 lots in last week.
Silver costs ended reduce with spot silver costs at COMEX fell by 1.69% to $25.66 per ounce for the week. MCX Silver September futures ended down by 1.41% to Rs 68,319 per KG. Silver costs underperformed gold costs for the second week following weak cues from industrial metals. The CFTC information showed that dollars managers decreased their net lengthy positions by 879 lots in last week.
Bullion costs traded mixed with Gold costs extended gains for the fourth week with mixed worldwide cues and FED comments although silver costs parted strategies from gold witnessing promoting in the last trading session. The valuable metals had been up all through the week with a decline in US treasury yields. However, costs trimmed gains with strength in the dollar index and recovery in US bond yields on dovish FED stance. US Fed Chairman Jerome Powell defended the central bank’s continued help for the US economy on Thursday even as inflation runs at uncomfortable levels, reiterating comments made this week that it was nevertheless also quickly to scale back stimulus. The US 10 year treasury yields ended at 1.30% right after falling beneath 1.29% in the course of the week. The dollar index gained more than half a per cent for the week capping upside in the valuable metals.
We count on gold costs to trade sideways to up in the coming week with COMEX spot gold resistance at $1833 per ounce and help at $1790 per ounce. At MCX, Gold August costs have close to term resistance at Rs 48,600 per 10 grams and help at Rs 47,700 per 10 gram. COMEX silver spot has close to term resistance at $26.80 per ounce with help at $24.90 per ounce. MCX Silver September has crucial resistance at Rs 70,500 per KG and help at Rs 66,500 per KG.
(Tapan Patel is a Senior Analyst (Commodities) at HDFC securities. Views expressed are the author’s personal. Please seek advice from your economic advisor prior to investing.)