By Tapan Patel
Commodity costs traded decrease with a lot of the commodities within the non-agro phase persevering with to say no whereas crude oil costs remained exceptions with marginal positive aspects. Bullion costs declined on market expectations over aggressive FED in July assembly and India import obligation hike. Base metals traded weak on decrease demand from China and world slowdown considerations together with stronger greenback. Crude oil costs traded agency on provide considerations and powerful demand for the 12 months.
Gold costs traded decrease with spot gold costs at COMEX fell by 0.85% to $1811.43 per ounce for the week. Gold August futures at MCX ended 2.56% larger at Rs. 51917 per 10 gram following rupee depreciation and hike in import obligation with quick impact. The spot rupee fell by 0.89% at 79.04 towards the greenback for the week. Gold ETF holdings continued outflows as holdings at SPDR Gold Shares fell to 1042 tonnes from earlier week’s 1061 tonnes. The CFTC information confirmed that cash managers have decreased their bullish bets in gold by 15179 to 9 month low.
Silver costs witnessed heavy sell-off with spot silver costs at COMEX plunged by 6% to $19.88 per ounce for the week. MCX Silver September futures fell by greater than 3% at Rs. 57742 per KG for the week. Silver costs prolonged fall underperforming gold on weaker demand for industrial metals and heavy promoting in base metals. The CFTC information confirmed that cash managers have decreased their bullish bets in silver by 6816 to five week low.
Bullion fell virtually 7% final quarter — probably the most in additional than a 12 months the place Gold costs reported a 3rd weekly decline and fell by 8% for the quarter resulted in June. Bullion costs prolonged decline on charge hike expectations from US FED and different main central banks. The market gamers expect one other 75 bps enhance in rates of interest within the upcoming US FOMC assembly. The stronger greenback and agency bond yields has dampened demand kind non-interest bearing property like gold and silver.
The greenback index rose by 0.91% at 105.14 for the week. The actual blow on the valuable metals costs got here after India, the world’s second largest bullion shopper, raised its primary import obligation on gold to 12.5% from 7.5%. Silver costs plunged on market hypothesis of doable hike in import obligation too. The transfer dragged worldwide gold costs to seven month low whereas rupee depreciation and obligation affect supported MCX gold costs to commerce agency.
We count on gold costs to commerce sideways to down this week with COMEX spot gold resistance at $1840 per ounce and help at $1780 per ounce. At MCX, Gold August costs have close to time period resistance at Rs. 52400 per 10 grams and help at Rs. 51200 per 10 gram. COMEX Spot silver has close to time period resistance at $20.80 per ounce with help at $18.70 per ounce. MCX Silver September has essential resistance at Rs. 60500 per KG and help at Rs. 56000 per KG.
(Tapan Patel, Senior Analyst (Commodities), HDFC Securities. Views expressed are the writer’s personal.)
Source: www.financialexpress.com”