By Tapan Patel
Commodity costs traded larger with most of the commodities in the non-agro segment rallying the most in the last trading session of the prior week. Bullion costs gained post-FED speech when base metals had been supported by weaker dollar and reopening of port activities in China. Crude oil costs rallied more than 10% on provide disruption fears amid hurricane threats in Gulf of Mexico.
Gold costs traded larger with spot gold costs at COMEX rose by 2.05% at $1817.57 per ounce for the week. Gold October futures at MCX ended .81% up at Rs 47,538 per 10 gram limiting upside on rupee appreciation. The spot rupee rallied by .95% against the dollar for the week. Gold ETF holdings continued outflows as holdings at SPDR Gold Shares fell close to their lowest because April last year to 1002 tonnes from the prior week’s 1012 tonnes for the week. The CFTC information showed that funds managers improved their net lengthy positions by 16943 lots in last week.
Silver costs traded reduce with spot silver costs at COMEX rallied by 4.35% to $24.03 per ounce for the week. MCX Silver September futures rose by 3.02% to Rs 63,585 per KG. Silver costs outperformed Gold for the week supported by a get in industrial metals amid eased COVID worries in China. The reopening of shipping activities from crucial ports boosted investment sentiment silver along with powerful valuable metals. in The CFTC information showed that funds managers improved their net lengthy positions by 418 lots in last week.
Bullion costs traded throughout the larger throughout the week with gold costs reported the very best week because May hitting 3-week highs. The valuable metals costs rallied on Friday producing most of the gains of the week with comments from US Jackson Hole Symposium. Bullion costs got help from the weaker dollar and fall in US treasury yields immediately after US Fed Chairman sounded more cautious and failed to give clear hint on asset tapering. Jerome Powell stated that the U.S. economy was on excellent footing but nevertheless vulnerable from dangers posed by the coronavirus pandemic. The dollar index fell by .87% to 92.69 for the week when US 10 year bond yields declined to 1.31%. Bullion costs may possibly trade larger on dovish Fed stance with pandemic worries and inflation issues and slower financial development.
We count on gold costs to trade sideways to up in the coming week with COMEX spot gold resistance at $1860 per ounce and help at $1770 per ounce. At MCX, Gold October costs have close to term resistance at Rs 48,one hundred per 10 grams and help at Rs 46,800 per 10 gram. COMEX silver spot has close to term resistance at $24.90 per ounce with help at $23.20 per ounce. MCX Silver September has crucial resistance at Rs 67,000 per KG and help at Rs 60,500 per KG.
(Tapan Patel is a Senior Analyst (Commodities) at HDFC securities. Views expressed are the author’s personal. Please seek advice from your monetary advisor prior to investing.)