Commodity costs traded greater through the week passed by with Bullion costs witnessing the ideal week of the last six months. Crude oil costs reported a second weekly acquire with broad getting in commodities. Base metals extended gains with Copper and Aluminium costs rose the most boosted by powerful demand outlook and reduced provide issues.
Gold costs traded greater with spot gold costs at COMEX rose by 3.51% to $1831 per ounce for the week. Gold costs at MCX gained by 2.17% to Rs 47,751 per 10-gram limiting gains by sharp rupee appreciation. The spot rupee rose by .77% against the dollar for the week. Gold ETF holdings witnessed inflows as holdings at SPDR Gold Shares rose to 1025 tonnes from earlier week’s 1017 tonnes. The CFTC information showed that income managers elevated their net extended positions by 2979 lots in last week.
Silver costs outperformed gold with spot silver costs at COMEX rallied by 5.91% to $27.45 per ounce for the week. MCX Silver May futures rose 5.78% to Rs 71,429 per KG. The CFTC information showed that income managers elevated their net extended positions by 6098 lots in last week. The powerful rally in industrial metals boosted getting in Silver on-demand development optimism.
Bullion costs witnessed powerful getting through the week hitting the 10 week higher levels with gold costs crossing the important resistance of $1800 per ounce. The valuable metals rallied on dollar decline and fall in US bond yields on clarification of US Treasury secretary Jennet Yellen more than interest prices. The dollar index fell by more than 1% to 90.23 mark even though US 10 year treasury yields declined to 1.58% through the week. Bullion costs got added increase from weak US job industry information on Friday as US unemployment rose by 6.1% in April. The dovish Fed stance and slower US financial recovery are the important bullish components for valuable metals. The surge in commodities might add worries of greater inflation for the markets.
We anticipate gold costs to trade up in the coming week with COMEX spot gold resistance at $1860 per ounce and assistance at $1795 per ounce. At MCX, Gold June costs have close to term resistance at Rs 48,400 per 10 grams and assistance at Rs 46,600 per 10 gram. COMEX silver spot has close to term resistance at $28.30 per ounce with assistance at $26 per ounce. MCX Silver July has crucial resistance at Rs 74,400 per KG and assistance at Rs 68,800 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 economic advisor prior to investing.)