Commodity costs traded larger for the duration of the week passed by with bullion costs reported very first weekly obtain soon after losing for two weeks. Crude oil costs pared weekly losses on geopolitical tensions on Iran whilst base metals gained on demand development optimism.
Gold costs traded larger with spot gold costs at COMEX ended half a % up to $1824 per ounce providing a pause to weekly decline. Gold costs at MCX ended .51% larger at Rs. 47318 per 10 grams for the week in line with international peers in spite of of rupee appreciation. The spot rupee ended .24% larger against the dollar for the week. Gold ETF holdings continued to witness outflows as holdings at SPDR Gold Shares fell to 1142 tonnes for the duration of the week from prior week’s 1156 tonnes. The CFTC information showed that income managers improved net lengthy positions by 10 lots in final week on stimulus hopes.
Silver costs traded larger with spot silver costs at COMEX rallied by more than 1.63% to $27.36 per ounce for the week. MCX Silver March futures rose by .55% to Rs. 69117 per KG. The CFTC information showed that income managers reduce net lengthy positions by 927 lots in final week.
Bullion costs witnessed recovery from 10-week lows with a decline in dollar index which improved investors’ appetite for the valuable metals. The dollar index fell by .62% for the week soon after US inflation information failed to cheer markets. Bullion costs recovered on US stimulus hopes with $1400 relief checks from Biden administration. However, upside remained capped in valuable metals costs with dollar recovery in final trading day of the week.
We anticipate gold costs to trade sideways to down for brief term with COMEX spot gold obtaining resistance close to $1860 per ounce and assistance at $1760 per ounce. At MCX, Gold April costs have close to term resistance at Rs. 47800 per 10 grams and assistance at Rs. 46600 per 10 gram. COMEX silver spot has close to term resistance at $28.50/$30 per ounce with assistance at $25.80 per ounce. MCX Silver March has vital 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 are the author’s personal. Please seek advice from your monetary advisor prior to investing.)