Weekly Commodity Report

Precious metal Prices Languish at 2018 Lows despite Dollar U-Turn

Precious metal prices continued to languish at year-to-date lows despite the dollar turning negative and rising geopolitical tensions amid growing fears of a U.S.-China trade war. Yellow metals fell as the dollar posted a fresh 2018 high before profit taking sparked a reversal pressuring the greenback lower. Raising the prospect of a tit-for-tat trade war between the world’s two largest economies, Beijing ignored Trump’s threats, however, vowing to immediately impose penalties of the “same scale” on American goods.

Oil Prices Settle 2.7% Lower on Growing Fears of OPEC Output Hike

Crude oil prices settled lower as data pointing to an ongoing expansion in U.S. output and fears that Saudi Arabia and Russia were set to hike production weighed on sentiment. Pointing to signs of an expansion in U.S. output, the number of oil rigs operating in the US increased for a fourth-straight week, rising by 1 to 863, according to data from energy services firm Baker Hughes. Crude oil Traders fear that an uptick in global output would slow the rebalancing in oil markets as the production-cut agreement has proved effective in slashing the glut in global crude supplies.

Base Metal Is Conspicuously Tight-Lipped on U.S.-China Rift

China could respond to Friday’s U.S. tariffs by cutting imports of raw materials, hurting corporate revenue and weighing on metals prices. A full-out trade war between the U.S. and China could negatively affect the metals and mining sector in several ways. U.S. tariffs on a huge range of equipment and parts could feed inflation, driving up miner’s costs. If it also hikes domestic production of resources like copper or coal, the boost to supply could be a double-whammy for prices. Base metals prices in three months on the London Metal Exchange were for the most part lower on the morning of Friday June 15.

GOLD

TECHNICAL VIEW

MCX Gold last week was quite volatile but at the end of the week it took reverse movement from its channel line which is near by 31450 levels and comes down. For upcoming session it may give more down side movement and tests major support level of 30800 and after that 30500 will act as a next crucial support level. On upwards side it has strong resistance level of 31400 and if price holds this level then it may take some recovery from lower to higher level up to next resistance of 31700.

STRATEGY

Better strategy in MCX GOLD is to sell below 31000 for the target of 30500 with stop loss of 31600.

SILVER

TECHNICAL VIEW

MCX Silver last week showed sideways to bullish movement but at the last day of week it took strong reversal from its upper channel line i.e. 41700. For upcoming week it can give some correction towards next support level of its lower channel line i.e. 39800 levels and if price sustains below this level then it may continue with down trend. On upper side it has strong resistance of 40900 and after that 41400 will be next major resistance level.

STRATEGY

Better strategy in MCX SILVER is to buy above 40500 for the target of 41500, with stop loss of 39000.

CRUDE

TECHNICAL VIEW

MCX Crude oil last week showed sideways movement but end of week it showed strong bearish movement and able to close around its lower trend line i.e. 4400 levels. For upcoming trading session if it breaks and sustains below 4400 then it may take more correction towards next important support level of 4300 and after that continue with bearish trend. On upward side it has major resistance level of 4500 level and if price maintains above this level then it takes recovery up to next resistance of 4600.

STRATEGY

Better strategy in MCX CRUDE is to buy above 4500 for the target of 4650, with stop loss of 4300.

COPPER

TECHNICAL VIEW

MCX Copper last week showed reversal movement from its upper channel line and also broke major support level of 475 and able to close below this level. For upcoming week it can continue with down side movement and price slides towards next support of 465. On upwards side it has strong resistance level of 480 and if it maintains above this level then we expect some recovery from lower levels up to next resistance of 490.

STRATEGY

Better strategy in MCX COPPER is to buy above 478 for the target of 488, with stop loss of 465.

GUARGUM

Guar gum showed bullish movement last week, and found its important resistance level of 7825. If the prices sustains below its support level of 7500 then the bearish momentum will take prices up to 7250 level. On other hand if the prices maintains above 7950 then prices may find the next resistance level of 8200.

SOYAREF

Soyaref showed sideways to bearish movement last week and found the support level of 735.50. If the prices sustain below its support level of 735.50 then the bearish momentum will take prices up to 725 levels. On other hand if the prices maintains above 762 then prices may find the next resistance level of 772.

TURMERIC

Turmeric showed sideways to bullish movement last week, and able to close around its important resistance level of 7400. If the prices maintain above its resistance level of 7550 then the bullish momentum will take prices 7750 level. On other hand if the prices sustains below the support level of 7240 then prices find the next support level of 7050.

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