Weekly Commodity Report

High Gold Prices and Weak GDP Growth Hit Chinese and Indian Demand

GOLD PRICES ticked higher in quiet London trade Friday, holding almost unchanged from last week’s finish against most major currencies as global stock markets pushed up to new all-time highs despite No.2 economy China reporting its slowest annual GDP growth in 3 decades. Although the fastest large-economy growth at 6.1% for 2019, China’s official estimate comes at the very bottom of the Beijing regime’s GDP target. With only a week to go until the household demand peak of Chinese New Year, gold prices in Shanghai slipped ¥1 for the day to ¥344.85 per gram at China’s official benchmarking auction, holding 3.5% below last week’s spike near September’s 7-year highs.

 

Oil steady as sluggish China growth offsets trade deal optimism

Oil prices were steady on Friday as reports of sluggish economic growth in China, the world’s biggest crude importer, raised concerns about future fuel demand and countered optimism from the signing of the Sino-U.S. trade deal earlier in the week.

In the fourth quarter of 2019, the world’s second-largest economy increased by an expected 6% from a year earlier, while the full-year expansion was 6.1%, the slowest in 29 years, government data showed on Friday.”A well-expected fourth-quarter China GDP rate provided little clue for oil price trading on Friday morning, and mounting downward economic pressure will perhaps limit oil’s upside in the mid- to long-term

Rio Tinto Q4 copper production falls on lower ore grades

Rio Tinto’s fourth-quarter copper production sank due to lower ore grades, especially at its Kennecott copper mine, while aluminium production took a hit due to unexpected outages in Iceland and Canada during the second half of 2019.

Rio Tinto’s 2019 mined copper production of 577,400 tonnes was 5% lower than in 2018, reflecting lower copper grades, which impacted the fourth quarter production at the Kennecott copper mine in Utah in particular.

TECHNICAL VIEW

MCX Gold last week showed straight bullish movement and pulls upward towards the resistance level of 40000 and closed around it. For upcoming week if price trades above 40500 levels then it can give upside movement up to next psychological resistance level of 41000. On lower side, if price slide towards lower side than 39500 will act as vital support level below this momentum can find next support level at 38000.

STRATEGY

Better strategy in MCX GOLD is to buy above 40000 for the target of 40500 with stop loss of 39500.

TECHNICAL VIEW

MCX Silver last week showed sideways to bullish movement after took a support of 45678. For upcoming trading session we will continue to suggesting bearish trend, if price sustains below 45500 levels and after that 44500 to 44000 will act as a next important support level. On higher side it has immediate resistance at 48000 and if price maintain above this level then it will take towards the resistance level of 49500.

STRATEGY

Better strategy in MCX SILVER is to sell below 46300 for the target of 45300, with stop loss of 47300.

TECHNICAL VIEW

MCX Crude oil last week showed bearish movement in whole week and found near to its support zone i.e. around 4059 levels. For upcoming period if  bearishness will active towards support level of 4050 then after that 3950 will be next immediate support and if price takes bullish movement from current levels towards upside side then it can test resistance level of 4300 and after that 4400 will act as a next resistance level.

STRATEGY

Better strategy in MCX CRUDE is to sell below 4130 for the target of 4000, with stop loss of 4300.

TECHNICAL VIEW

MCX Copper last week showed bullish movement, pull towards the resistance level of 459.40. For upcoming session, if price maintains above 455 levels then it may give more upside movement towards next resistance level of 460. On lower side it has support level at 450 and if sustain below 450 level then it will move down towards the next major support level of 445.

STRATEGY

Better strategy in MCX COPPER is to sell below 450 for the target of 445, with stop loss of 457.

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