Commodity costs traded mixed for the duration of the week passed by with most of the commodities in Non-agro segment kept firm trading variety except crude oil. Bullion costs kept variety-bound trading when base metals traded larger on powerful demand outlook more than green spending. Crude oil costs traded weak on demand development worries and larger supplies.
Gold costs traded steady with spot gold costs at COMEX ended flat to $1777.20 per ounce for the week. Gold costs at MCX ended marginal up to Rs. 47532 per 10 gram supported by rupee depreciation. The spot rupee ended .89% decrease against the dollar for the week. Gold ETF holdings continued outflow as holdings at SPDR Gold Shares remained unchanged close to 1020 tonnes for the duration of the week. The CFTC information showed that income managers enhanced their net extended positions by 4534 lots in last week.
Silver costs traded firm with spot silver costs at COMEX ended marginal up to $26.01 per ounce for the week. MCX Silver May futures ended flat to Rs. 68674 per KG. The CFTC information showed that income managers enhanced their net extended positions by 5520 lots in last week.
Bullion costs traded mixed for the duration of the week maintaining the firm trading variety on weaker dollar and positive financial information. Gold costs failed to break the psychological level of $1800 at COMEX regardless of of fall in US bond yields and decline in dollar index. The upside in valuable metals have been capped by stronger than anticipated financial information from US and ease of lockdown measures in Europe. The dollar index fell under 91 mark shedding .76% when US 10 year treasury yields ended to 1.55% from the 14 month higher of 1.77% made not too long ago. The increasing instances in emerging markets like India, Brazil and dovish stance from Fed might assistance bullion costs to trade firm in brief term. The traders and investors might eye us FOMC meeting due next Wednesday.
We count on gold costs to trade sideways to up in coming week with COMEX spot gold resistance at $1800 per ounce. The break above $1800 might lead costs towards $1840 with assistance at $1750 per ounce. At MCX, Gold June costs have close to term resistance at Rs. 48200 per 10 grams and assistance at Rs. 46800 per 10 gram. COMEX silver spot has close to term resistance at $26.80 per ounce with assistance at $24.60 per ounce. MCX Silver July has essential resistance at Rs. 72500 per KG and assistance at Rs. 67500 per KG.
(Tapan Patel is a Senior Analyst (Commodities) at HDFC securities. The views expressed are the author’s personal. Please seek the advice of your monetary advisor just before investing.)