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Gold, silver rally, crude volatile while copper at two-month low: Choice Commodity Report

Gold, silver rally, crude volatile while copper at two-month low: Choice Commodity Report
The Comex Gold spot price maintained stability above the USD 2300 mark, closing the week at USD 2332. Meanwhile, the Multi Commodity Exchange of India (MCX) Gold July contract saw a modest increase of +0.86 per cent, settling at 71965 according to Choice's commodity weekly report.

This upward momentum followed positive US inflation and PPI data, indicating inflationary pressures.

Despite the Federal Open Market Committee (FOMC) keeping interest rates steady at 5.50 per cent, with expectations of only one rate cut this year, gold futures showed a bullish trend.

Technical indicators on the 4-hour chart pointed to a potential resistance breakout at 72300, with further gains possible towards 73000.

The strengthening Dollar Index (DXY) and declining 10-Year Bond yields also contributed to gold's price dynamics.

Looking ahead, traders are advised to monitor upcoming US economic data releases for potential market impacts.

MCX Silver futures fluctuated throughout the week, rebounding from support levels to settle at 89090.

Comex Silver spot prices found stability above USD 28.66, closing at USD 29.54. Similar to gold, silver experienced profit-taking amid unchanged FOMC rates and a hawkish stance projecting a 25 basis points rate cut this year.

Technical analysis showed a forming Falling Wedge pattern on the daily chart, suggesting a potential breakout above resistance levels at 91200 - 93000 for further bullish momentum.

The Gold/Silver ratio remained above the 20-DMA at 78.33, closing at 78.92. However, indicators like RSI and MACD hinted at bearish sentiments, advising caution among traders.

WTI crude futures saw a slight 0.2 per cent decline to USD 78.45 per barrel on Friday, influenced by lower US consumer confidence but supported by anticipated higher summer fuel demand.

The market's uncertainty over US rate adjustments was mitigated by positive news of Russia's crude production reduction pledge.

Technical charts suggested a potential resistance at the 200 EMA on daily charts, impacting future price movements.

The weekly outlook for Crude Oil (MCX July) remained sideways to positive, contingent on ongoing technical levels and market sentiments.

US Natural Gas futures faced a third consecutive day of declines, closing at USD 2.88/mmBtu, reflecting milder US temperatures despite initial demand forecasts. MCX Natural Gas June contracts settled at 2414, with technical charts indicating resistance levels at 261.

Despite short-term weather-related variations, weekly and daily charts hinted at a bearish market sentiment, driven by broader economic indicators and technical resistances.

Copper prices dipped to a two-month low at USD 4.4950 per pound on Friday, impacted by a strengthening dollar and increasing stocks indicating a surplus.

MCX Copper closed the week at 856.9, up 0.37 per cent. Despite declining US PPI and CPI figures, suggesting reduced pricing pressures, technical indicators like the 200-EMA at 852.7 offered support.

The inverted hammer candle on the weekly chart suggested potential strength, with RSI levels around 63 indicating momentum.

Continued trading above 862 could signal further upward movement in copper prices in the coming week.


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