Weekly Commodity Report

Gold Falls as Strong Payrolls Data Send Risk Assets Higher

Gold prices tumbled on Friday after a stronger-than-expected U.S. labor market report sent risk assets soaring and drained money from havens. By 11.38 AM ET (1638 GMT), gold futures for delivery on the Comex exchange were down 1.3% at $1,463.65 a troy ounce, having given up almost all the gains made in a week of otherwise patchy economic data, against a worsening backdrop as regards the U.S.-China trade war. Spot gold was down 1.1% at $1,459.08. The U.S. economy added 266,000 jobs in November, helped by the return to work of people affected by General Motors’ strike in October. The unemployment rate fell to 3.5% and average weekly earnings growth inched up to an annual rate of 3.1% from 3.0% in the previous two months.

Oil drops as market awaits ratification of OPEC+ supply cut

Oil slipped in early Asian trade on Friday, with U.S. crude moving further away from a two-month high after OPEC agreed to increase output curbs in early 2020 but failed to promise further steps after March. Brent futures LCOc1 were down 21 cents, or 0.3%, at $63.18 by 0258 GMT. West Texas Intermediate oil futures CLc1 fell 14 cents, or 0.2%, to $58.29 a barrel. They hit $59.12 a barrel on Thursday, the highest since the end of September. The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia – a grouping known as OPEC+ – agreed to more output cuts to avert oversupply early next year as economic growth stagnates amid the U.S.-China trade war.

Aluminium, lead, zinc rise in futures amid strong demand

Aluminium prices on Friday edged up 0.19 per cent to Rs 132.85 per kg in futures market after speculators built up fresh positions amid positive trend at the spot market. Lead prices on Friday traded higher by 30 paise to Rs 152.90 per kg in futures trade as participants built up fresh positions driven by pick-up in demand in spot market. On the Multi Commodity Exchange, lead for delivery in December edged higher by 30 paise, or 0.20 per cent, to Rs 152.90 per kg in a business volume of 696 lots. Zinc prices on Friday rose 0.55 per cent to Rs 183.75 per kg in futures market as traders built up fresh positions amid increase in spot demand. Copper prices on Friday traded up by Rs 1.75 at Rs 432.35 per kg in futures trade on pick-up in spot demand.

TECHNICAL VIEW

MCX Gold last week showed sideways to bullish movement in first half of week and in last session drags down towards the support level of 37650 and closed around it. For upcoming week if price trades above 38000 levels then it can give upside movement up to next psychological resistance level of 38500. On lower side, if price still slide towards lower side than 37400 will act as vital support level below this momentum can find next support level at 36800.

STRATEGY

Better strategy in MCX GOLD is to sell below 37400 for the target of 37000 with stop loss of 37850.

TECHNICAL VIEW

MCX Silver last week showed sideways to bearish movement and slide towards the support level of 43400. For upcoming trading session we will continue to suggesting bearish trend, if price sustains below 43400 levels and after that 42000 to 41000 will act as a next important support level. On higher side it has immediate resistance at 45000 and if price maintain above this level then it will take towards the resistance level of 47000.

STRATEGY

Better strategy in MCX SILVER is to sell below 43400 for the target of 42000, with stop loss of 45000.

TECHNICAL VIEW

MCX Crude oil last week showed bullish movement in whole week and close at resistance zone i.e. around 4250 levels. For upcoming period if  bearishness will continue towards next support level of 4100 and after that 3900 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 4500 will act as a next resistance level.

STRATEGY

Better strategy in MCX CRUDE is to buy above 4270 for the target of 4400, with stop loss of 4100.

TECHNICAL VIEW

MCX Copper last week showed sideways to bearish movement, except in last trading session pull towards the resistance level of 439. For upcoming session, if price maintains above 440 levels then it may give more upside movement towards next resistance level of 450. On lower side it has psychological support level at 430 and if sustain below 430 level then it will move down towards the next major support level of 420.

STRATEGY

Better strategy in MCX COPPER is to buy above 439 for the target of 445, with stop loss of 430.

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