By Tapan Patel
Commodity prices traded during the week passed were mixed with the bullion prices witnessed in the previous trading session. Base metal complexes traded weakly after China suggested curbing rising inflation. Crude oil prices expanded their weekly rise due to strong demand outlook after the pipeline closed and rising product demand.
COMEX spot gold prices rose 0.67% to $ 1843 per ounce, raising gold prices. The MCX gold price ended in the red at 47,676 rupees per 10 grams, which limits the profits from high rupees. The spot rupee rose 0.30% against the dollar that week. Gold ETF holdings flowed in as SPDR Gold Shares holdings increased from 1025 tonnes last week to 1028 tonnes. Money managers increased their net long positions by 29452 lots last week in hedging against inflation bets, according to CFTC data.
Silver prices fell slightly, with COMEX spot silver prices surpassing $ 27 at $ 27.42 per ounce. The MCX Silver May futures closed at Rs 71,085 per KG, down 0.48%. The price of silver traded under pressure compared to gold after the sale of industrial metals. CFTC data show that money managers increased their net long positions by 4397 lots last week.
Bullion prices traded well at gold prices, and after witnessing a sale at the beginning of the week, the second week could end in green. Despite the strong dollar and rising bond yields, precious metals recovered and showed rare equivalence. The dollar index closed at 0.10% to the 90.32 mark, while the US 10-year Treasury yield closed at 1.635% in a week. Bullion bullion was driven by inflation concerns after the US consumer price index rose 4.2% in the 12 months to April, the biggest rise in almost 13 years. The dovish stance of the Federal Reserve Board of Governors and the slowdown in the US economic recovery are major bullish factors for precious metals. However, central banks argue that these inflationary pressures are “temporary” and weaken as the economy fully recovers.
Gold prices are expected to fall next week with COMEX spot gold resistance of $ 1860 per ounce and support of $ 1800 per ounce. Breaks above $ 1860 can lead prices to the $ 1890 level. At the MCX, the price of Gold June is 48,400 rupees per 10 grams with short-term resistance and is supported at 47,200 rupees per 10 grams. The short-term resistance of COMEX Silver Spot is $ 28.30 per ounce and support is $ 26 per ounce. The MCX Silver July has significant resistance at Rs 74,400 per KG and is supported at Rs 68,800 per KG.
(Tapan Patel is a senior analyst (commodity) at HDFC Securities. The views expressed are the author’s own. Please consult your investment adviser before investing.)
Gold and silver rates have skyrocketed for the second straight week.Bullion prices are expected to continue to rise
https://www.financialexpress.com/market/commodities/gold-silver-rates-surge-for-second-week-straight-expect-bullion-prices-to-continue-rallying/2253117/ Gold and silver rates have skyrocketed for the second straight week.Bullion prices are expected to continue to rise