By Tapan Patel
Commodity costs traded increased with many of the commodities within the non-agro section witnessing shopping for within the earlier week supported by weaker greenback. Bullion costs rallied, rebounding from latest lows on secure haven shopping for over financial progress worries. Crude oil costs gained by greater than 2% over tight provides and robust demand forward of summer time season. Base metals rallied on demand progress prospectus from China with easing COVID restrictions.
Gold costs traded increased with spot gold costs at COMEX rose by 1.92% to $1846.50 per ounce for the week. Gold June futures at MCX gained by 1.92% to Rs. 50829 per 10 gram together with rupee depreciation. The spot rupee fell by 0.13% at 77.55 in opposition to the greenback for the week. Gold ETF holdings continued outflows as holdings at SPDR Gold Shares fell to 1063 tonnes from earlier week’s 1082 tonnes. The CFTC knowledge confirmed that cash managers have decreased their web lengthy positions by 19322 heaps within the final week.
Silver costs rallied with spot silver costs at COMEX rose by 3.13% to $21.78 per ounce for the week. MCX Silver May futures rose by 3.50% to Rs. 61407 per KG for the week. Silver costs surged with a 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 1034 heaps to the three yr low.
Bullion costs reported the primary weekly achieve in final 5 weeks as rising issues over financial progress and excessive inflation spurred demand for the secure haven asset. The greenback index fell by greater than 1% to 103.15 whereas international fairness indices plunged for the seventh week on the tort. The weaker than anticipated financial knowledge from China and US Softer financial knowledge, together with weak PMI, Jobless claims and report inflation underlined the dangers to progress because the Federal Reserve gears up for its most aggressive rate-hiking cycle in many years. The yield on the benchmark 10-year U.S. Treasury be aware has moved all the way down to 2.79% from May peaks of three.2% on expectations that US FED could restrict fee hikes to 50 bps in upcoming conferences. The geopolitical threat over Russia-Ukraine battle, increased oil costs and inflation worries are the supporting elements which can restrict draw back within the valuable metals. Gold costs have rebounded from a robust help vary of $1780 per ounce setting course for $1870/$1920 per ounce for a brief time period. Silver costs must cross the resistance barrier of $22.10 per ounce to renew uptrend.
We anticipate gold costs to commerce sideways to up this week with COMEX spot gold resistance at $1870 per ounce and help at $1780 per ounce. At MCX, Gold June 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 $22.10 per ounce with help at $21 per ounce. MCX Silver July has essential resistance at Rs. 63000 per KG and help at Rs. 59800 per KG.
(Tapan Patel, Senior Analyst (Commodities), HDFC Securities. Views expressed are the writer’s personal.)
Source: www.financialexpress.com”