By Tapan Patel
Commodity rates traded mixed with most of the commodities in non-agro segment traded below stress witnessing promoting for the week. Gold rates managed to finish in green although silver rates declined following weak worldwide cues. Crude oil and base metals plunged on-demand development worries more than increasing COVID situations.
Gold rates traded in variety with spot gold rates at COMEX ended marginal up at $1781 per ounce for the week. Gold October futures at MCX ended .46% up at Rs. 47158 per 10 gram along with rupee depreciation. The spot rupee ended about .20% weaker against the dollar for the week. Gold ETF holdings continued outflows as holdings at SPDR Gold Shares fell to 1012 tonnes from prior week’s 1022 tonnes for the week. The CFTC information showed that cash managers improved their net lengthy positions by 26636 lots in last week.
Silver rates traded decrease with spot silver rates at COMEX fell by 3.05% to $23.03 per ounce for the week. MCX Silver September futures fell by 2.40% to Rs. 61721 per KG. Silver rates witnessed sell-off with fall in industrial metals more than demand worries. Silver rates continued underperforming gold rates which enhanced Gold/Silver ratio to 77.33. The CFTC information showed that cash managers decreased their net lengthy positions by 2146 lots in last week.
Bullion rates kept volatile trading throughout the week on mixed worldwide cues with stronger dollar and Fed tapering issues along with increasing delta variant worries. The valuable metals have capped upside with Gold rates are struggling to break above $1800 per ounce on Fed jitters more than unwinding the stimulus measures. The current comments from a variety of FED officials to hike interest prices sooner than 2023 has boosted shopping for in dollar index. The current FED minutes showed that officials saw the possible to commence asset tapering in 2021 delivering that the financial recovery remains inside expectations. The traders and investor are eyeing for comments from the Fed’s Jackson Hole symposium, due to take location from Aug. 26 to 28. The dollar index rallied by 1.06% to 93.50 for the week. Bullion rates kept downside restricted more than increasing worries more than speedy-spreading Delta variant across the globe like key economies like China, US, and Japan.
We anticipate gold rates to trade sideways to up in coming week with COMEX spot gold resistance at $1810 per ounce and help at $1750 per ounce. At MCX, Gold October rates have close to term resistance at Rs 47,600 per 10 grams and help at Rs 46,700 per 10 gram. COMEX silver spot has close to term resistance at $23.90 per ounce with help at $21.80 per ounce. MCX Silver September has significant resistance at Rs 63,800 per KG and help at Rs 60,500 per KG.
(Tapan Patel is a Senior Analyst (Commodities) at HDFC securities. Views expressed are the author’s personal. Please seek advice from your monetary advisor ahead of investing.)