Weekly Commodity Report

Dollar Extends Gain as Gold Prices Slip

On Friday precious metal prices slipped as the dollar extended gains from the previous session. A strong U.S. inflation report and continued trade war concerns were cited as tailwind for the greenback. On Friday the dollar rise, trading near a 10-day peak after U.S. consumer prices data showed a build-up of inflation pressure that would allow the Fed to raise rates as many as four times this year. This week dollar has benefited from the trade conflict concerns that emerged earlier, which ended up funneling safe-haven bids into the currency.

Crude oil Prices Trade Lower Despite Spare Capacity Warning, U.S. Shale Output in Focus

On Friday crude oil prices headed lower in European morning trade as concerns about a China-U.S. trade war and the return of Libyan oil to the market offset a warning about a shortage in global crude supplies despite increases in production from the Organization of Petroleum Exporting Countries. On Wednesday Libya’s National Oil Corp had announced that four export terminals were being reopened and allowed the return of as much as 850,000 barrels per day of oil into the markets, ending a standoff that had shut down most of Libya’s oil output. After on Friday, traders await the latest Baker Hughes’ data on U.S. production. The number of active U.S. rigs drilling for oil rose by five to 863 last week.

Base metal Prices in Rebound Mode

On Thursday The Labor Department said its Consumer Price index rose just 0.1% last month after edging up 0.3% in May. That missed the economists’ forecast for a 0.2% rise. Chinese and U.S. officials considered restarting the trade conversations, which could lead to a bilateral agreement. Upgraded sentiment on the trade-war front comes just days after the White House issued a list late Tuesday of 10% tariffs on $200 billion worth of Chinese imports it will assess. More Easing trade concerns fueled demand for other metals as copper remained on track to snap a three-day losing streak.

GOLD

TECHNICAL VIEW

MCX Gold last week showed sideways to bearish movement and breached its major support level of 30200 and also closes around its next support of 30000. For upcoming trading session if price breaks 30000 then it comes down and test next important support level of 29700 and continue with downward trend. On upward side it has strong resistance of 30300 and if it maintains above this level then it start recovery attempts and test next major resistance of 30600 and regain the main bullish trend.

STRATEGY

Better strategy in MCX GOLD is to buy above 30300 for the target of 30700 with stop loss of 29800.

SILVER

TECHNICAL VIEW

MCX Silver last week showed sideways to down side movement and close around its important support level and its lower key line of 38900. For upcoming weak if it breaks 38900 then it may give lower side movement and test next major support level of 38500. On higher levels it has important resistance level of 39500 and if price breaks this level then it takes quite recovery from lower levels and test next major resistance of 40000 and also continue with up trend.

STRATEGY

Better strategy in MCX SILVER is to sell below 38900 for the target of 37900, with stop loss of 40300.

CRUDE

TECHNICAL VIEW

MCX Crude oil last week showed sideways to bearish movement and also breached its major support of 5000. For upcoming session it will continue with its downward trend and test next crucial support level of 4700. On upper side it has strong resistance level of 4900 and if price maintains above this level then after that 5050 will act as a next strong resistance level and it also takes recovery from lower level as well as we expects reverse trend.

STRATEGY

Better strategy in MCX CRUDE is to sell below 4650 for the target of 4450, with stop loss of 4950.

COPPER

TECHNICAL VIEW

MCX Copper last week broke its major support of 425 and showed sideways to negative movement and also able to close around next support of 415. For upcoming trading session it may continue with down trend if it breaks and sustains below 415 and after that 405 will be the next important support level. On higher side it has strong resistance level of 430 and if price maintains above this level then it takes quite recovery and test next resistance level of 440.

STRATEGY

Better strategy in MCX COPPER is to buy above 430 for the target of 440, with stop loss of 415.

GUARGUM

Guar gum showed bearish movement last week, and found its important support level of 8530. If the prices sustains below its support level of 8440 then the bearish momentum will take prices up to 8140 level. On other hand if the prices maintains above 8900 then prices may find the next resistance level of 9175.

SOYAREF

Soyaref showed sideways to bearish movement last week and found the support level of 739. If the prices sustain below its support level of 739 then the bearish momentum will take prices up to 730 levels. On other hand if the prices maintains above 751 then prices may find the next resistance level of 761.

TURMERIC

Turmeric showed sideways to bearish movement last week, and able to close around its important support level of 6950. If the prices maintain above its resistance level of 7100 then the bullish momentum will take prices 7265 level. On other hand if the prices sustains below the support level of 6850 then prices find the next support level of 6700.

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