Commodity rates traded volatile throughout the week passed by with bullion rates ended reduced whilst crude oil halted current rally falling back to beneath $60 per barrel. Base metals traded robust with Copper soaring to nine years higher on provide deficit and greater demand optimism.
Gold rates traded reduced with spot gold rates at COMEX at $1784 per ounce losing more than 2% for the week. Gold rates at MCX ended 2.37% reduced at Rs 46,197 per 10 grams in line with worldwide peers and rupee appreciation. The spot rupee ended .14% greater against the dollar for the week. Gold ETF holdings continued to witness liquidation as holdings at SPDR Gold Shares fell to 1,128 tonnes against the prior week’s 1,142 tonnes. The CFTC information showed that income managers decreased net lengthy positions by 22,270 lots in final week with slump in gold rates.
Silver rates ended the week with marginal losses with spot silver rates at COMEX fell by .26% to $27.29 per ounce for the week. MCX Silver March futures ended .15% down to Rs 69,012 per KG. The CFTC information showed that income managers improved net lengthy positions by 1299 lots in final week.
Bullion rates pared the prior week’s gains throughout the week witnessing promoting on danger-on sentiments. The valuable metals declined with rise in US bond yield and robust equity indices boosted by positive financial information. Bullion cost halted six days decline on Friday as rates reversed from assistance levels on inflation hedge and $1.9 trillion stimulus hopes. US Federal Reserve balance sheet rose to a fresh record higher of $7.512 trillion, a $124 billion sequential uptick and highest because May.
We count on bullion rates to trade sideways to up in the coming week with COMEX spot gold obtaining resistance close to $1820 per ounce and assistance at $1760 per ounce. At MCX, Gold April rates have close to term resistance at Rs 46,800 per 10 grams and assistance at Rs 45,600 per 10 gram. COMEX silver spot has close to term resistance at $28.50/$30 per ounce with assistance at $26.20 per ounce. MCX Silver March has significant resistance at Rs 72600 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 advice from your economic advisor just before investing.)