By Tapan Patel
Commodity costs traded decrease with many of the commodities within the non-agro section continued draw back for the week besides power advanced. Bullion costs traded risky in the course of the week on FED jitters and a stronger greenback. Crude oil costs rallied almost 5% whereas pure fuel costs rallied by greater than 12% for the week on tight provides and better demand amid geopolitical threat. Base metals ended down on China demand worries following slowdown worry amid rising COVID-19 circumstances. The greenback index ended 0.68% up at 103.66 for the week.
Gold costs traded decrease with spot gold costs at COMEX ended 0.69% down at $1884 per ounce for the week. Gold June futures at MCX fell by 0.79% to Rs. 51343 per 10 gram regardless of rupee depreciation. The spot rupee fell by 0.63% at 76.92 nearing the all-time low towards the greenback for the week. Gold ETF holdings continued outflows as holdings at SPDR Gold Shares fell to 1082 tonnes from earlier week’s 1094 tonnes. The CFTC information confirmed that cash managers have decreased their web lengthy positions by 16507 tons within the final week.
Silver costs prolonged decline with spot silver costs at COMEX fell by 1.83% to $22.36 per ounce for the week. MCX Silver May futures fell by 1.59% to Rs. 62548 per KG for the week. Silver costs declined with fall in industrial metals amid rising COVID circumstances in China. The CFTC information confirmed that cash managers have decreased their web lengthy positions by 11273 tons within the final week.
Bullion costs fell for the third week on the trot with gold costs reporting the longest weekly loses since December 2021. Bullion costs traded beneath strain on stronger greenback and risky bond yields as hypothesis over excessive inflation worries saved bond yields up. The market had already discounted 50 bps hike in key rates of interest which supported treasured metals to rebound publish US FOMC after FED chair Jerome Powell dominated out extra aggressive will increase. A selloff in long-end Treasuries has pushed 10-year yields firmly above 3%. The rising power prices over the availability worries has spurred inflation worries whereas main central banks are set to shift coverage stance to sort out inflation. The geopolitical threat over Russia-Ukraine battle, increased oil costs and China COVID worries are the supporting components which can restrict draw back in treasured metals.
Gold costs could battle to discover a pattern briefly time period and are anticipated to maintain present buying and selling vary intact. Silver costs could commerce beneath strain following weaker demand.
We count on gold costs to commerce sideways to down this week with COMEX spot gold resistance at $1920 per ounce and assist at $1850 per ounce. At MCX, Gold June costs have close to time period resistance at Rs. 52100 per 10 grams and assist at Rs. 50800 per 10 gram. COMEX Spot silver has close to time period resistance at $23.60 per ounce with assist at $21.30 per ounce. MCX Silver July has essential resistance at Rs. 64500 per KG and assist at Rs. 60200 per KG.
(Tapan Patel, Senior Analyst (Commodities), HDFC Securities. Views expressed are the creator’s personal.)
Source: www.financialexpress.com”