By Tapan Patel
Commodity prices traded mixed on Thursday, continuing the trend from the previous session. On Wednesday, the bullion prices traded marginally down while base metals traded firm on weaker dollar and demand growth prospects. Crude oil prices rallied by nearly 5 per cent on bullish weekly inventory data and geopolitical risk. US Treasury yields rose on Wednesday while dollar index traded weak. Here is a look at how different commodities are behaving in today’s market.
Outlook: Bullion
Bullion prices traded higher with spot gold price at COMEX was trading near $1739 per ounce while spot silver price at COMEX was trading up near $25.43 per ounce in the morning trade. Bullion prices traded higher on dollar decline which fell to three week lows despite of some uptick in bond yields. The higher inflation concerns and worries over rising virus cases have supported buying in precious metals. We expect bullion prices to trade sideways to up for the day.
Bullion prices halted declines with progress on $1.9 trillion stimulus package. However, the precious metals are still under selling pressure due to firm bond yields and stronger dollar which may limit the upside for short term.
The strength index RSI for MCX Gold is hovering in the oversold zone (26) suggesting weakness in strength. However, this oversold nature of RSI could limit more downside in gold prices.