Financial News

Gold price fall from 5-week high as dollar strengthens; bullions may trade under pressure this week

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Gold price todayGold ETF holdings have been unchanged as holdings at SPDR Gold Shares have been at 1043 tonnes for the week.
(Picture: REUTERS)

By Tapan Patel

Commodity costs traded weak with a lot of the commodities in Non-Agro phase led to pink for the week besides Crude oil. Crude oil costs rallied on robust demand outlook within the second half of the 12 months. Bullion costs traded underneath strain on stronger greenback following strong financial knowledge whereas base metals fell on worry of coverage change from central banks and weak China demand.

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Gold costs traded weak with spot gold costs at COMEX fell by 0.64% to $1891 per ounce for the week. Gold costs at MCX led to inexperienced at Rs 48,600 per 10 gram as rupee depreciation supported gold costs at home market. The spot rupee fell by 0.78% towards the greenback for the week after rallying for the 5 weeks on the trot. Gold ETF holdings have been unchanged as holdings at SPDR Gold Shares have been at 1043 tonnes for the week. The CFTC knowledge confirmed that cash managers elevated their internet lengthy positions by 2943 heaps in final week.

Silver costs ended decrease with spot silver costs at COMEX fell by 0.51% at $27.79 per ounce for the week. MCX Silver July futures ended marginal right down to Rs 71,539 per KG. Silver costs witnessed decline following weak industrial metals and fall in treasured metals. The CFTC knowledge confirmed that cash managers decreased their internet lengthy positions by 2765 heaps in final week. 

Bullion costs traded underneath strain through the week with gold costs falling from 5 weeks excessive on risk-on sentiments. The dear metals costs declined after robust US manufacturing knowledge raised market expectations of unwinding of stimulus measures. The US personal job market knowledge got here decrease than market forecasts which supported bullion costs to pare some weekly losses. The stronger than anticipated knowledge lifted financial development outlook which pushed greenback index and bond yields increased. The greenback index ended agency above 90 mark with 0.12% positive aspects whereas US 10 12 months treasury yields ended at 1.55% after hitting 1.64% through the week. The lesser than anticipated US non-farm payroll knowledge signalled great distance for financial restoration maintaining FED’s palms tied to alter financial coverage.

We count on gold costs to commerce sideways to up within the coming week with COMEX spot gold resistance at $1940 per ounce and assist at $1850 per ounce. At MCX, Gold August costs have close to time period resistance at Rs 49,200 per 10 grams and assist at Rs 48,000 per 10 gram. COMEX silver spot has close to time period resistance at $28.90 per ounce with assist at $26.70 per ounce. MCX Silver July has vital resistance at Rs 74,400 per KG and assist at Rs 69,800 per KG.

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

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