Gold, silver prices rise on US inflation concerns; expect rates to trade sideways this week

Gold ETF holdings witnessed outflows as holdings at SPDR Gold Shares fell to 1043 tonnes from 1053 tonnes for the week.
(Picture: REUTERS)

By Tapan Patel

Commodity costs traded frim with a lot of the commodities within the Non-Agro phase ending in inexperienced for the week.  Bullion costs traded increased on weaker greenback whereas base metals rallied on robust demand over US infrastructure push.  Crude oil costs prolonged rally on robust gas demand restoration kind US and Europe. 

Gold costs traded increased with spot gold costs at COMEX rose by almost 1% to $1781 per ounce for the week reporting the primary weekly beneficial properties since Might 2021. Gold costs at MCX ended up by 0.42% at Rs 46,925 per 10 gram supported by rupee depreciation. The spot rupee fell by 0.44% in opposition to the greenback for the week extending draw back. Gold ETF holdings witnessed outflows as holdings at SPDR Gold Shares fell to 1043 tonnes from 1053 tonnes for the week. The CFTC knowledge confirmed that cash managers decreased their internet lengthy positions by 38288 heaps in final week.

Silver costs rallied outperforming gold with spot silver costs at COMEX rose by 1.22% to $26.10 per ounce for the week. MCX Silver July futures ended up by 0.41% to Rs 67,873 per KG. Silver costs traded agency supported by rally in base metals over robust demand outlook for industrial metals.

Bullion costs witnessed agency buying and selling through the week on weaker greenback and US inflation issues. The US Federal Reserve chairman signalled increased inflation and slower FED tapering which supported treasured metals to commerce up. The US inflation rose for the third month boosting shopping for in gold over greenback promoting. The greenback index fell by 0.41% to 91.85 whereas US 10 yr treasury yields had been muted close to 1.52% through the week. Bullion costs are anticipated to commerce in present vary on lack of recent triggers as merchants and investor will search for the cues on FED tapering of the bond-buying programme. 

We count on gold costs to commerce sideways to up within the coming week with COMEX spot gold resistance at $1800/$1820 per ounce and assist at $1750 per ounce. At MCX, Gold August costs have close to time period resistance at Rs 47,600 per 10 grams and assist at Rs 46,500 per 10 gram. COMEX silver spot has close to time period resistance at $27 per ounce with assist at $25.10 per ounce. MCX Silver September has vital resistance at Rs 71,200 per KG and assist at Rs 67,000 per KG.

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