Gold, silver halt two-week rally on sturdy greenback; will bullion costs resume upward march this week?

Gold costs traded decrease with spot gold costs at COMEX fell by 0.73% to $1732.52 per ounce final week.
(Picture: REUTERS)

By Tapan Patel

Commodity costs traded combined throughout the week handed by with Bullion costs traded decrease whereas crude oil futures witnessed unstable buying and selling on Suez Canal blockage. Base metals witnessed combined commerce protecting the decrease buying and selling vary on a stronger greenback and China demand.

Gold costs traded decrease with spot gold costs at COMEX fell by 0.73% to $1732.52 per ounce for the week. Gold costs at MCX ended down by 0.84% at Rs 44,642 per 10 grams as stronger rupee added stress to the home gold costs. The spot rupee ended flat in opposition to the greenback for the week witnessing restoration within the second half of the week. Gold ETF holdings continued outflow as holdings at SPDR Gold Shares fell to 1037 tonnes throughout the week down from the earlier week’s 1052 tonnes. The CFTC knowledge confirmed that cash managers elevated web lengthy positions by 1269 tons in final week. 

Silver costs ended decrease with spot silver costs at COMEX plunged by greater than 4.52% to $25.06 per ounce for the week. MCX Silver Might futures fell by 4% to Rs 64,805 per KG. The CFTC knowledge confirmed that cash managers decreased web lengthy positions by 3018 tons in final week. Silver costs traded decrease with weak industrial metals on-demand progress issues on pandemic worries.

Bullion costs halted two weeks’ rally traded below stress as stronger greenback and rise in bond yields weighed on the costs. The rising virus circumstances in Europe and worry of lockdown measures boosted shopping for in greenback index in opposition to weaker Euro and peer currencies. The US bond yields surged on weak treasury auctions and Fed feedback which added stress to the valuable metals. Silver costs witnessed promoting on worries over demand for industrial metals as European leaders hinted of lockdown measures. The greenback index rallied by 0.91% at 92.76 for the week. The US 10 yr treasury yields hovered close to 13-month highs at 1.66% throughout the week. 

We anticipate bullion costs to commerce sideways to up in coming week. Gold costs have held key help ranges at $1680 protecting the vary at $1720-$1740 per ounce. COMEX spot gold has necessary resistance close to $1740/1760 per ounce and help at $1710 per ounce. At MCX, Gold April costs have close to time period resistance at Rs. 45200 per 10 grams and help at Rs 44,200 per 10 gram. COMEX silver spot has close to time period resistance at $25.60 per ounce with help at $24.50 per ounce. MCX Silver Might has necessary resistance at Rs 67,000 per KG and help at R. 63,000 per KG.

(Tapan Patel is a Senior Analyst (Commodities) at HDFC securities. The views expressed are the creator’s personal. Please seek the advice of your monetary advisor earlier than investing.)

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