Weekly Commodity Report

As U.S. Dollar Slips Gold Prices Edge Up

On Friday in Asia Gold prices edged up as U.S. dollar dropped on expectations that the Federal Reserve may pause interest rates hike this year if the global economy continues to slow. On Thursday Jerome Powell the Fed Chairman reiterated that the central bank could afford to be calm on monetary policy, and downplayed suggestions that interest rates would be hiked twice more in 2019. Bullions prices are highly sensitive to rising interest rates, which lift the opportunity cost of holding non-yielding gold. The gold was also supported by concerns on weakening global growth, after countries including the U.S., Switzerland, China and France all reported weaker-than-expected data this month.

As Investors Await New Catalyst for Buying Crude Oil Prices Little Changed

On Friday in Asia Crude Oil prices were little changed as investors awaited a new catalyst, either a breakthrough in U.S.-Sino trade talks or another impactful number on Saudi production cuts, to take the market higher. WTI and Brent are set for weekly gains of more than 7% and 8% respectively.On Wednesday the two countries concluded the latest round of trade talks. Althought no deal has been reached yet, both sides said they had agreed to continue to keep in close contact, Althought U.S. President Donald Trump said with China the U.S. was having “tremendous success” in its trade negotiations.

 On the weekend base metals prices extend losses; lead edge up

On Friday January 11 Base metals prices on the Shanghai Futures Exchange were broadly down during Asian morning trading, on Thursday extending the weakness experienced following disappointing economic data from China. Uncertain-than-expected producer price index (PPI) and consumer price index (CPI) data from China continues to dent investors’ appetite for riskier assets, spurring a sell-off across most of the base metals on the SHFE, with nickel and copper leading the decline.

TECHNICAL VIEW

MCX Gold last week showed sideways to bullish movement and close around its major resistance level of 32200. For upcoming period if price breach 32200 then we will continue to suggest upward scenario up to next important resistance level of 32500. On downward side it has major support of 31800 and below this level it will take some correction and price may goes down towards its bullish support line i.e. 31500 levels.

STRATEGY

Better strategy in MCX GOLD is to sell below 31900 for the target of 31500 with stop loss of 32500.

TECHNICAL VIEW

MCX Silver last week showed sideways to upward side movement and test major resistance level of 39800. For upcoming week if price maintains above 39800 then it can test next strong resistance of 40200 as well as continue with bullish bias. On lower side it has immediate support of 39200 and if price holds this level then it will push for sharp correction towards next support of 38700 and after that 38300 will act as a next crucial support and trend may also change.

STRATEGY

Better strategy in MCX SILVER is to sell below 39000 for the target of 38000, with stop loss of 40500.

TECHNICAL VIEW

MCX Crude oil last week showed bullish movement and also broke its bearish resistance line i.e. 3600 levels as well as able to close above this level. For upcoming session it may continue with its bullish rally and test next major resistance level of 3800 and if price takes reverse movement from this level then we expect quick correction from higher to lower side towards support of 3550 and if price breaks this level then 3450 will be next support level.

STRATEGY

Better strategy in MCX CRUDE is to sell below 3600 for the target of 3400, with stop loss of 3850.

TECHNICAL VIEW

MCX Copper last week showed quite volatile movement and it also test its major resistance level of 420 but unable to close above this level. For upcoming trading session it may give some downward side movement and test initial support of 410 and if price sustains below 410 then this bearish movement can take price towards next support level of 400 and if it takes quick recovery from lower to higher side then it can test strong resistance of 420 and above this level bullish trend may active up to next resistance of 430.

STRATEGY

Better strategy in MCX COPPER is to sell below 410 for the target of 400, with stop loss of 425.

Guar gum showed sideways to bearish movement last week, and found its important support around the level of 8180. If the prices sustains below its support level of 8100 then the bearish momentum will take prices up to 7850 level. On other hand if the prices maintains above 8520 then prices may find the next resistance level of 8800.

Soyaref showed bullish movement last week and found the resistance level of 750.85. If the prices maintain above its resistance level of 752.50 then the bullish momentum will take prices up to 760.50 levels. On other hand if the prices sustain below 744.50 then prices may find the next support level of 736.25.

Turmeric showed bearish movement last week, and able to found its important support level of 6550. If the prices maintain above its resistance level of 6850 then the bullish momentum will take prices 7000 level. On other hand if the prices sustains below the support level of 6480 then prices find the next support level of 6240.

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