Oil advance as Hormuz tanker traffic improves despite ongoing U.S.-Iran conflict
Here is the commodity roundup of this week. Commodity roundup is the happenings in commodity market of this week. In commodity roundup, I will discuss only in base metals and bullion commodity.
On the currency front Rupee has appreciated this week by almost one rupee. Gold/Silver was in continuous decline from the past two weeks. On MCX gold has made a recent high level near 34,000/- per 10 grams on the electronic traded exchange, which is highest in the last five years. From there a sharp fall of almost more than 2,000 rupees have been seen in two weeks. Last Thursday, on 7th of March, gold traded in a narrow range and mostly consolidation has been seen. I was anticipating that a small price rise can be seen on Friday due to weekend profit taking by sellers and which have seen this weekend.
Silver has also witnessed weakness like gold and it has lost almost 3,000 INR per kg. In the last two weeks. Fall was supported with the strong rupee and global weakness in the bullion market. Due to strength in our Indian currency and weakness in the global bullion market, this decline was somehow obvious, because the rise was also sharp, so a healthy correction was expected.
As per my analysis, since gold/silver has consolidated in a narrow range on last Thursday, so a small recovery was expected on weekend and that has been seen on Friday with almost 300 points gains from a lower level. In base metals, especially copper and zinc also witnessed a healthy correction. In my opinion, the long term trend is still positive in base metals and after healthy correction, these may show strength in price from next week.
Zinc has taken support on the weekly chart and seems ready to move up from next week. Copper after correction may show some consolidation and then resume its trend. Global growth concern dragged the price down last week in base metals but we should remember that ‘trend is a friend’ and long term trends look positive in all base metals. Next week will decide how much my anticipation will be correct or wrong. Till then enjoy your week-end.
