By Tapan Patel
Commodity costs traded decrease with many of the commodities within the non-agro phase prolonged decline for the week on demand development worries and recession fears. Bullion costs declined on market expectations over aggressive FED within the July assembly. Base metals traded weak on decrease demand from China and international slowdown considerations. Crude oil costs traded weak as recession fears triggered promoting regardless of tight provide.
Gold costs traded decrease with spot gold costs at COMEX fell by 0.68% to $1827 per ounce for the week. Gold August futures at MCX declined by 0.42% to Rs. 50623 per 10 gram limiting draw back on rupee depreciation. The spot rupee fell by 0.34% at 78.34 towards the greenback for the week. Gold ETF holdings witnessed outflows as holdings at SPDR Gold Shares fell to 1061 tonnes from earlier week’s 1075 tonnes.
Silver costs witnessed promoting with spot silver costs at COMEX fell by 2.35% to $21.16 per ounce for the week. MCX Silver July futures fell by almost 2% and ended at Rs. 59749 per KG for the week. Silver costs decline underperforming gold on weaker demand for industrial metals and heavy promoting in base metals.
Bullion costs traded decrease and reported the second weekly loss regardless of a decline in greenback index. The merchants and buyers weighed on expectations of a bigger fee hike after FED chairman Jerome Powell reiterated that the central financial institution’s inflation battle is “unconditional” in his testimony. Some policymakers on the central financial institution have advocated one other 75-basis level hike for July. The treasured metals costs have remained below strain regardless of document inflation on stronger greenback and agency bond yields. The greenback index ended 0.49% down at 104.19 whereas US 10 yr bond yields had been sturdy at 3.13% by the top of the week. However, the weaker financial knowledge from the US has spurred recession fears which has capped down aspect. Gold costs might even see some volatility this week on expectations that the Group of Seven – G7 nations might announce a ban on imports of Russian gold on Tuesday.
We count on gold costs to commerce sideways to down this week with COMEX spot gold resistance at $1870 per ounce and help at $1800 per ounce. At MCX, Gold August costs have close to time period resistance at Rs. 51400 per 10 grams and help at Rs. 49800 per 10 gram. COMEX Spot silver has close to time period resistance at $22.40 per ounce with help at $20.50 per ounce. MCX Silver July has necessary resistance at Rs. 62500 per KG and help at Rs. 58500 per KG.
(Tapan Patel, Senior Analyst (Commodities), HDFC Securities. Views expressed are the creator’s personal.)
Source: www.financialexpress.com”