During the previous week in the COMEX market, prices of all the base metals such as Aluminum, Copper, Iron Ore, Lead and zinc rallied for the second week in a row as the bull sentiment remained intact in the commodity markets. As for precious metals Gold and Silver are concerned, both experienced a hit during the week, with Gold and silver losing 2.4% and 0.4% respectively, closing the week at $1,773.75 and $26.95 respectively.
Gold price touched 8 months low last week, weighed by the rise in US treasury yields and a strong dollar, and the Covid-19 vaccination drive. In the Indian markets, the fall in global rates and import duty cut in Budget has pushed gold prices lower. The investors’ appetite for riskier assets seems to have increased, due to which, they are moving towards more risky asset classes such as equities. Physical gold demand in the country has increased during the past week, due to fall in the prices.
Crude oil dipped during the last week, despite a sharp fall in US crude inventories, as the selling pressure weighed on the prices due to profit booking. Expectations of higher OPEC production, due to which, the supply is expected to increase, has also pressured the oil prices.
For the current week, gold and silver prices in global and domestic markets are expected to be highly volatile as the possibility of lockdown in some states of the country may weigh on the equity markets, which might make investors incline towards safe haven asset classes such as precious metals. However, the investors also need to look after some important economic data such as Fed Chair Powell’s Testification, US oil inventories and US Prelim GDP numbers. For the week, we expect gold in COMEX market to be in the range of $1,850 to $1,700, while silver is expected to be in the range of $26.0 to $27.9. Whereas, for bullion market traders, we assume gold futures to trade in the range of 44,879 to 48,174.
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