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Below the Perspective on Currency and Commodity Market by Riya Singh - Research Analyst, Commodities and Currency Desk, Emkay Global

“Currency - The Indian Rupee is strengthening against the US Dollar due to a decline in Dxy and US yields. Markets are closely watching US consumer price data for clues on inflation trends and potential Federal Reserve interest rate adjustments. According to estimates, the headline CPI is anticipated to register a monthly increase of 0.3%, resulting in a year-on-year reading of 3.4%, up from the previous 3.2%. Meanwhile, the core CPI, on an annual basis, is expected to ease slightly to 3.7% from the prior 3.8%, signaling a modest but encouraging step in the direction of disinflation. While recent data suggests a more hawkish Fed stance, there's still a chance of policy easing in June. The USDINR spot exchange rate is expected to consolidate between 83.35 and 83 levels this week.

Commodity -  Since mid-March, both gold and silver prices have been steadily climbing, reaching all-time highs in both international and domestic markets. This surge in demand can be attributed to expectations of rate cuts by central banks worldwide and escalating geopolitical tensions, factors that have significantly impacted bullion prices. Currently, both gold and silver are navigating through overbought territories, facing strong resistance levels. International gold prices are encountering robust resistance between $2450 and $2485, while domestically, the bullish momentum is expected to taper off around levels of 72000 to 72200. Similarly, silver prices are facing resistance internationally at levels between $28.50 and $28.95, and domestically at around 83500. Given these conditions, profit-taking in both precious metals is anticipated to be on the horizon.”

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