While most base metal prices retreated last week, the bullish momentum in the commodity market persisted in the bullion pack and crude oil. Investors’ favoured asset class right now continues to be yellow metal. The Comex spot gold price rocketed to a brand-new 52-week high of $2032 per ounce, and for the week, it ended up rising by 1.96% to $2007 per ounce. In the meantime, gold prices in the domestic market reached a new lifetime high of Rs 61,000 per 10 kilos in the MCX.
Crude oil prices in the energy sector saw a third consecutive weekly gain. As a result of an unexpected production cut by OPEC and its allies and a drop in US oil stocks, NYMEX WTI crude oil prices increased 6.65% last week, signalling a tightening of the market. Following a string of dismal US macroeconomic statistics, there was a fall in the price of base metals amid persistent worries about global economic development.
Gold prices‘ rally extended last week as the appetite for safe-haven demand continued to support bullish momentum. The yellow metal’s latest upswing came after a series of weaker US macro data suggested a cooling in economic activity and increased expectations that the Fed may not need to raise rates much further and could even pause the tightening cycle in May’s meeting. On the other hand, demand from central banks and the investment front boosted bullish sentiment. The 11th consecutive month of net central bank purchases of gold was February, when 52 tonnes were added to reserves. The largest consumer in February was China. While the banking crisis increased demand for gold, physically backed gold ETFs had net inflows in March, the first inflows in ten months.
The price of silver on the Comex increased for a fourth week in a row, rising by 3.65% to $24.97 per ounce. The weekly settlement price for MCX Silver May futures was higher by 3.26% to Rs 74570 per kilogramme. Speculators upped their net-long silver positions by 8,661 to reach 19,493. Since nine weeks, the net-long position has been the most bullish.
source from: msn.com
