Commodity rates traded mixed witnessing higher volatility through the week passed by with bullion rates ended decrease although crude oil rates traded larger on decrease provide issues. Base metals ended mixed with copper managing to finish in green.
Gold rates traded decrease with spot gold rates at COMEX plunged by almost 3% to $1734 per ounce for the week. Gold rates at MCX ended 1% down at Rs 45,736 per 10 grams limiting downside on sharp rupee depreciation. The spot rupee rescued domestic gold rates from heavy sell-off, ending more than 1% decrease against the dollar for the week. Gold ETF holdings declined as holdings at SPDR Gold Shares fell to 1093 tonnes against 1128 tonnes in the prior week. The CFTC information showed that income managers decreased net lengthy positions by 186 lots final week.
Silver rates fell for the second week with spot silver rates at COMEX fell by 2.28% to $26.67 per ounce for the week. MCX Silver March futures fell by 2.50% to Rs. 67261 per KG. The promoting in base metals pushed silver rates southwards through the week. The CFTC information showed that income managers decreased net lengthy positions by 1569 lots final week.
Bullion rates witnessed a sell-off with gold reported second month-to-month loss falling by 8% for the year as danger-on sentiments drew investors out of protected-haven assets. The valuable metals declined through the week with increasing US bond yield which also boosted obtaining in dollar. The 10 year US treasury yields rose to the pre-pandemic levels of final year soon after FED Chairman vowed to preserve the accommodative policy to help financial recovery. The dollar index rose to 1 week higher being the ideal option to gold amid slump in equity indices in the second half of the week.
We count on bullion rates to trade sideways to up in the coming week witnessing some pullback with COMEX spot gold obtaining resistance close to $1760 per ounce and help at $1690 per ounce. At MCX, Gold April rates have close to term resistance at Rs 46,500 per 10 grams and help at Rs 45,400 per 10 gram. COMEX silver spot has close to term resistance at $27.50 per ounce with help at $26.20 per ounce. MCX Silver March has critical resistance at Rs 70,500 per KG and help at Rs 65,000 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 prior to investing.)