Gold costs to commerce sideways to up, assist at 47400; fall in greenback index boosts shopping for in commodities

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Gold costs have caught within the vary of $1780-$1850 per ounce after the US FED signalled fee hike in 2022.

By Tapan Patel

Commodity costs traded greater with a lot of the commodities within the non-agro phase witnessing shopping for supported by a weaker greenback. Bullion costs traded up on inflation worries and geopolitical danger regardless of constructive US information. Base metals traded up on decrease provide fears over excessive power prices with greater demand. Crude oil costs prolonged good points crossing the $90 mark on tight provide and better demand following the US winter storm.

Gold costs traded greater with spot gold costs at COMEX rose by 0.93% to $1808 per ounce for the week. Gold April futures at MCX ended 0.76% up at Rs. 47948 per 10 gram as rupee appreciation capped upside. The spot rupee rose by 0.46% at 74.70 towards the greenback for the week. Gold ETF holdings witnessed outflows as holdings at SPDR Gold Shares fell to 1012 tonnes from earlier week’s 1014 tonnes. The CFTC information confirmed that cash managers have decreased their web lengthy positions by 55160 heaps within the final week.

Silver costs ended up with spot silver costs at COMEX rose by 0.20% to $22.52 per ounce for the week. MCX Silver March futures nonetheless ended 0.30% decrease to Rs. 60849 per KG for the week. The CFTC information confirmed that cash managers have decreased their web lengthy positions by 15867 heaps within the final week.

Bullion costs witnessed a unstable week on blended world cues. Gold costs managed to finish in inexperienced after falling to $1785 ranges witnessing string restoration from assist ranges. Spot Gold costs at COMEX managed to reclaim $1800 territory regardless of constructive US employment numbers and fee hike expectations from central banks. US employers added 467,000 jobs in January, beating economists’ expectations, though the jobless fee moved up fractionally to 4% from a earlier 3.9%. The US inflation continues to be at 40 years highs whereas actual bond yields are nonetheless destructive which has supported valuable metals costs to commerce agency.

The greenback index fell by 1.84% to 95.49 mark boosting shopping for in commodities. Gold costs have caught within the vary of $1780-$1850 per ounce after the US FED signalled fee hike in 2022. The rising power prices and geopolitical tensions in Russia – Ukraine standoff could preserve danger premium excessive for the quick time period.

We count on gold costs to commerce sideways to up within the coming week with COMEX spot gold resistance at $1830 per ounce and assist at $1780 per ounce. At MCX, Gold April costs have close to time period resistance at Rs. 48500 per 10 grams and assist at Rs. 47400 per 10 gram. COMEX Spot silver has close to time period resistance at $23.60 per ounce with assist at $21.40 per ounce. MCX Silver March has vital resistance at Rs. 63800 per KG and assist at Rs. 59200 per KG.

(Tapan Patel, Senior Analyst (Commodities), HDFC Securities. Views expressed are the creator’s personal.)

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