By Tapan Patel
Commodity rates traded reduce with most of the commodities in the non-agro segment witnessed promoting except crude oil. Bullion rates traded reduce on stringer dollar on US Fed tapering signals even though base metals traded weak on China crackdown and weak demand. Crude oil rates extended rally on powerful fuel demand recovery type US and Europe.
Gold rates traded reduce with spot gold rates at COMEX plunged by 6.04% to $1764 per ounce for the week the worst in last 15 months. Gold rates at MCX ended more than 4% reduce at Rs 46,728 per 10-gram limiting downside supported by rupee depreciation. The spot rupee fell by 1.07% against the dollar for the week continuing downside. Gold ETF holdings witnessed inflows as holdings at SPDR Gold Shares rose to 1053 tonnes from 1045 tonnes for the week.
Silver rates joined the selloff in valuable metals with spot silver rates at COMEX shed 7.63% ended at $25.79 per ounce for the week. MCX Silver July futures ended down by 6.41% to Rs 67,598 per KG. Silver rates traded reduce following weak international cues on stronger dollar and promoting in industrial metals.
Bullion rates witnessed sell-off throughout the week on stronger dollar and US FED’s hawkish stance. The US Federal Reserve signalled, on Wednesday, that it will raise interest prices at least twice by the finish of 2023 to .6% from existing levels of zero to .25%. The comments from St. Louis Fed President James Bullard added stress on Friday as he observed that the central bank could have to take into account raising interest prices by next year rather of 2023. The marketplace will focus on FED discussions on when it will begin unwinding the month-to-month asset obtain programme. The dollar index rallied by 1.84% to 92.23 lowering demand for secure-haven assets like gold and silver.
We anticipate gold rates to trade sideways to down in the coming week with COMEX spot gold resistance at $1800 per ounce and help at $1720 per ounce. At MCX, Gold August rates have close to term resistance at Rs 47,500 per 10 grams and help at Rs 46,000 per 10 gram. COMEX silver spot has close to term resistance at $27 per ounce with help at $24.80 per ounce. MCX Silver July has critical resistance at Rs 70,200 per KG and help at Rs 65,500 per KG.
(Tapan Patel is a Senior Analyst (Commodities) at HDFC securities. Views expressed are the author’s personal. Please seek the advice of your monetary advisor ahead of investing.)