Gold Has Best Month in 5 on Heightened Safe-Haven Play to Virus
Gold posted its best monthly gain in five on Friday as fears over China’s coronavirus epidemic drove more safe-haven buying in the yellow metal.Gold futures for April delivery on New York’s COMEX settled the day down $1.30, or 0.01%, at $1587.90. That didn’t stop the contract from posting a gain of more than 4% for January, the best performance for a benchmark gold contract since August. The investor flight from equities and other risky assets such as oil continued on Friday as China reported more than 200 deaths and 10,000 infections from the coronavirus.
Oil jumps as WHO declares emergency, says it is against travel, trade restrictions
Oil prices jumped on Friday following sharp losses this week, as the World Health Organization (WHO) came out against travel and trade restrictions in declaring a global emergency over the spread of a coronavirus that originated in China last year. Oil prices fell nearly 4% through Thursday this week – hitting three-month lows – before rebounding on Friday, with investors and traders worried over how spread of the virus would impact demand for oil and its products. U.S. West Texas Intermediate (WTI) futures CLc1 were up by $1.06 to $53.20 a barrel. The contract fell 2.2% on Thursday and is now 1.8% lower for the week.
Commodity Weigh Extended China Shutdown Virus Spreads
Several Chinese provinces have taken the extraordinary step of extending the Lunar New Year holiday to help curb the spread of the deadly coronavirus. Now commodity traders are assessing the impact of the shutdown in the world’s biggest energy user and steel and coal producer.Regions accounting for about 90% of copper smelting, 60% of steel production, 65% of oil refining and 40% of coal output have told companies to delay the restart of operations until at least Feb. 10. That will likely dent China’s output of many key commodities and may hurt its demand for raw materials, though the extent is less clear as some facilities run at least at partial utilization during the holiday.
MCX Gold last week showed straight bullish movement and pulls upward towards the resistance level of 41185 and closed around it. For upcoming week if price trades above 41500 levels then it can give upside movement up to next psychological resistance level of 42000. On lower side, if price slide towards lower side than 40500 will act as vital support level below this momentum can find next support level at 39700.
Better strategy in MCX GOLD is to buy above 41300 for the target of 42000 with stop loss of 40600.
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.
Better strategy in MCX SILVER is to buy above 47500 for the target of 49000, with stop loss of 45500.
MCX Crude oil last week showed bearish movement in whole week and found near to its support zone i.e. around 3662 levels. For upcoming period if bearishness will active towards support level of 3600 then after that 3400 will be next immediate support and if price takes bullish movement from current levels towards upside side then it can test resistance level of 3800 and after that 4000 will act as a next resistance level.
Better strategy in MCX CRUDE is to sell below 3650 for the target of 3500, with stop loss of 3850.
MCX Copper last week showed bearish movement, drag down towards the support level of 425.90. For upcoming session, if price maintains above 435 levels then it may give more upside movement towards next resistance level of 445. On lower side it has support level at 425 and if sustain below 425 level then it will move down towards the next major support level of 415.
Better strategy in MCX COPPER is to sell below 425 for the target of 415, with stop loss of 435.
(Click to submit your details) Just one step to get best trading tips and Recommendation.