Bullion rates traded larger on Monday right after US president Trump signed the $2.3 trillion help and spending package which he refused to sign in preceding week.
Image: Reuters
By Tapan Patel
Commodity rates traded mixed through the week passed by with most of the commodities in Non-Agri segment witnesses promoting stress on stronger dollar and demand development worries more than pandemic fears. The dollar index ended up by .34 % to 90.32 mark for the week. Gold rates traded reduce for the week with spot gold rates at COMEX ended flat to $1883 per ounce. Gold rates at MCX ended down by .46% to Rs. 50073 per 10 grams for the week. The Gold ETF holdings remained unchanged as holdings at SPDR Gold Shares have been at 1168 tonnes for the vacation-shortened week.
Silver rates halted gains with spot silver rates at COMEX ended to $25.83 per ounce reporting minor gains. MCX Silver March futures ended more than half a % down to Rs. 67509 per KG on broad weakness in base metals for the week. Silver rates traded muted more than mixed international cues with promoting in industrial metals on reduce demand issues.
Bullion rates traded larger on Monday right after US President Donald Trump signed the $2.3 trillion help and spending package which he had refused to sign in preceding week. The larger government spending indicates more stress to dollar which also boosted shopping for in bullion rates. Bullion rates are anticipated to trade larger more than pandemic worries and slower financial development. The increasing COIVD-19 circumstances across globe and lockdown measures in UK, Europe and some components of US may well hold danger premium higher in gold rates.
We anticipate bullion rates to trade in existing variety with bullish bias for quick term with COMEX spot gold getting powerful resistance close to $1920 per ounce and assistance at $1860 per ounce. At MCX, Gold February rates have close to term resistance at Rs. 51200 per 10 grams and assistance at Rs. 49700 per 10 gram. COMEX silver spot has close to term resistance at $27.50 per ounce with assistance at $25 per ounce. MCX Silver March has crucial resistance at Rs. 72000 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 the advice of your investment advisor just before investing.)