Financial News

Gold, silver rates surge for second week straight; expect bullion prices to continue rallying

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Gold price, silver priceCommodity costs traded blended in the course of the week handed by with Bullion costs witnessing shopping for in final buying and selling periods.
(Picture: REUTERS)

By Tapan Patel

Commodity costs traded blended in the course of the week handed by with Bullion costs witnessing shopping for in final buying and selling periods. Base metals advanced traded weak after China hinted to curb rising inflation. Crude oil costs prolonged weekly positive aspects on a robust demand outlook and better product demand after pipeline shutdown.

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Gold costs traded increased with spot gold costs at COMEX rose by 0.67% to $1843 per ounce for the week. Gold costs at MCX led to crimson at Rs 47,676 per 10-gram limiting positive aspects from rupee appreciation. The spot rupee rose by 0.30% in opposition to the greenback for the week. Gold ETF holdings witnessed inflows as holdings at SPDR Gold Shares rose to 1028 tonnes from the earlier week’s 1025 tonnes. The CFTC information confirmed that cash managers elevated their internet lengthy positions by 29452 heaps in final week on hedge in opposition to inflation bets.

Silver costs ended marginally down with spot silver costs at COMEX held grounds above $27 at $27.42 per ounce for the week. MCX Silver Might futures ended weak by 0.48% to Rs 71,085 per KG. Silver costs traded beneath strain evaluate to gold following promoting in industrial metals. The CFTC information confirmed that cash managers elevated their internet lengthy positions by 4397 heaps in final week. 

Bullion costs traded agency with gold costs managed to finish in inexperienced for the second week after witnessing promoting on the beginning of the week.  The dear metals rallied regardless of agency greenback and rise in bond yields exhibiting uncommon parity. The greenback index ended 0.10% as much as 90.32 mark whereas US 10 12 months treasury yields ended at 1.635% in the course of the week. The bullion bulls have been pushed by inflation worries after US Client Worth Index grew by 4.2% within the 12 months to April for its largest enhance in virtually 13 years. The dovish Fed stance and slower US financial restoration are the important thing bullish elements for valuable metals. Nonetheless, the central financial institution insists that these inflationary pressures are “transitory” and can fade because the economic system makes a full restoration.  

We anticipate gold costs to commerce up within the coming week with COMEX spot gold resistance at $1860 per ounce and assist at $1800 per ounce. The break above $1860 might lead costs in the direction of $1890 ranges. At MCX, Gold June costs have close to time period resistance at Rs 48,400 per 10 grams and assist at Rs 47,200 per 10 gram. COMEX silver spot has close to time period resistance at $28.30 per ounce with assist at $26 per ounce. MCX Silver July has vital resistance at Rs 74,400 per KG and assist at Rs 68,800 per KG.

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

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