By Saumil Gandhi
Commodity market witnessed bullish momentum throughout the week and most commodities gained around 1.5% to 3.0% on a weekly basis except gold. Gold prices gave up all its weekly gain and settled marginally lower last week on the back of traders locking in their profit after the recent rally. Crude oil prices surged to five months high and for the week price rose by more than 2.50% as traders tracked supply constraints after a recent production cut announced by OPEC and its alliance. While natural Gas prices posted their first weekly gain after three consecutive weeks declined. Meanwhile base metals price moved higher last week as investors weighed the possibility of more stimulus in China, the world’s top consumer.
Comex Silver prices surged to 12 months high and posted a fifth consecutive weekly gain on back of strong investment demand. MCX Silver May futures settled higher by 1.48 % to Rs 75677 per kg for the week. Comex silver ETF holdings saw an inflow of 939,701 ounces Thursday and those holdings are now 0.7% higher year-to-date.
Gold has rallied around 10.0% from February low but it looks like bullish momentum is likely to slow down a bit and short-term correction cannot be ruled out in gold prices. Comex spot gold has resistances at $2040/$2075 per ounce and supports at $1980/1935 per ounce. MCX Gold June future has resistances at Rs 61080/62300 per 10 grams and supports place at Rs 59780/59300 per 10 grams. Comex Spot silver has resistance at $ 26.95 per ounce and support at $23.70 per ounce. MCX Silver May future price face resistance at Rs 77,940/78,700 per 1kg and find support at Rs 73,600/72,480 per 1 kg for the next week.
(Saumil Gandhi, Senior Analyst (Commodities), HDFC Securities. Views expressed are author’s own. Please consult your financial advisor before investing.)