By Tapan Patel
Commodity costs traded increased with many of the commodities in non-agro phase traded constructive for the second week. Bullion costs traded increased on weak international cues on safe-haven shopping for. Crude oil costs gained by practically 2% over tight provides and robust demand forward of the summer time season. Base metals traded agency on demand progress prospectus regardless of of fall in fairness indices.
Gold costs traded increased with spot gold costs at COMEX rose by 0.39% to $1854 per ounce for the week. Gold June futures at MCX gained by 0.17% to Rs. 50913 per 10 gram together with rupee depreciation. The spot rupee fell by 0.03% at 77.57 towards the greenback for the week. Gold ETF holdings witnessed inflows as holdings at SPDR Gold Shares rose to 1070 tonnes from earlier week’s 1063 tonnes. The CFTC knowledge confirmed that cash managers have elevated their web lengthy positions by 22924 heaps in final week.
Silver costs rallied with spot silver costs at COMEX rose by 1.55% to $22.11 per ounce for the week. MCX Silver May futures gained by 1.15% to Rs. 62116 per KG for the week. Silver costs surged with robust demand outlook for industrial metals and secure haven shopping for. The CFTC knowledge confirmed that cash managers have decreased their web lengthy positions by 1211 heaps to the three 12 months low.
Bullion costs rose for the second week on the trot supported by weaker greenback and international progress worries. US Treasury yields had been subdued, with the benchmark 10-year word hitting a contemporary six-week low. Inflation fears proceed to dissipate whilst knowledge and company bulletins level to slower financial progress. US FED minutes confirmed that it favoured extra 50 foundation level fee hikes at its June and July 2022 conferences, as per expectations. Global fairness indices fell whereas greenback index retreated from 20 years highs as buyers and merchants weighed increased inflation and aggressive central financial institution stance which can hinder financial restoration. The greenback index fell by 1.44% to 101.67 mark boosting shopping for within the treasured metals. Gold costs have rebounded from robust help vary of $1780 per ounce setting course for $1870/$1920 per ounce for brief time period.
We anticipate gold costs to commerce sideways to up within the coming week with COMEX spot gold resistance at $1870 per ounce and help at $1820 per ounce. At MCX, Gold June costs have close to time period resistance at Rs. 51500 per 10 grams and help at Rs. 50200 per 10 gram. COMEX Spot silver has close to time period resistance at $23.20 per ounce with help at $21 per ounce. MCX Silver July has necessary resistance at Rs. 63500 per KG and help at Rs. 60200 per KG.
(Tapan Patel is a Senior Analyst (Commodities) at HDFC Securities. Views expressed are the writer’s personal. Please seek the advice of your monetary advisor earlier than investing)
Source: www.financialexpress.com”