Commodity market: Gold flutter due to Fed’s decision, now how will gold and silver move ahead

There is a lot of pressure on the prices of gold and silver. Gold has slipped below 48000 on MCX, while gold on Comex is close to 6-week low. The Hawkish Comment of the US Federal Reserve has put pressure on the prices. The Fed has hinted at raising rates in 2023.

US-Fed has not changed interest rates. With all. It has been decided to continue with asset purchases. The Fed has indicated to raise rates twice in 2023. The Fed has expressed hope for a sharp recovery in the US economy and has projected US GDP growth to be 7 percent. At the same time, inflation is estimated to be 3.4 percent.

pressure on gold

Gold has slipped below Rs 48,000 on MCX. Gold on MCX is seen at a low of 1 month. At the same time, gold on Comex is close to the low of one and a half months. The Hawkish comment of the Federal Reserve has put pressure on it. There is a jump in the dollar index and it is seen at an 8-week high. There has also been a jump in the US bond yield and it has come near 1.58 percent.

silver shine faded

Silver is seen at a 4-week low on Comex. The Hawkish comment of the Federal Reserve has put pressure on it. The dollar index has also jumped and is at an 8-week high.

Crude slips from higher levels

After the Fed meeting, crude oil is seeing pressure from the upper levels. However, Brent remains near $74. The prices are supported by better demand. Crude inventories in the US have decreased by 73.5 million barrels. OPEC+ is scheduled to meet on July 1 on the strategy for H2,2021. Iran’s crude exports are unlikely to increase.

pressure on metals

Metals are under pressure. Metals are weak on strong dollar and reports of sell-off from China’s reserves. Copper prices are seen at a two-month low. Funds have reduced long positions in metals. China will soon release the details of selling the metal from the reserve.

Agri Commodities

All-round decline is being seen in Agri Commodities. More pressure is being seen on spices and oilseeds. But cotton is being traded in a smaller scope.

Investment advice from Ajay Kedia of Kedia Commodity

SELL GOLD AUG @ 47900 SL 48100 TGT 47600

SELL COPPER JUNE @ 718 SL 724 TGT 708

BUY CRUDE OIL JUNE @ 5280 SL 5210 TGT 5360

SELL GUAR GUM JULY @ 6280 SL 6360 TGT 6180

BUY CASTOR JULY @ 5020 SL 4980 TGT  5100

BUY COCUDAKL JULY @ 2990 SL 2950 TGT 3050

Investment Advice by Ravindra Rao of Kotak Securities

Sell gold @ 47900 tgt 47500 sl 48100,

Buy Crudeoil @ 5240 tgt 5360 sl 5180

Sell copper @ 722 tgt 710 sl 726

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