Weekly Commodity Report

   

Gold Has Best Month in 5 on Heightened Safe-Haven Play to Virus 

Gold prices fluctuated as much as 1% in volatile trade on Friday as investors sold the precious metal to cover margin calls as the rapid spread of the coronavirus hammered equity markets. U.S. stocks tanked and the Dow Jones Industrials shed nearly 2%, while government bonds rallied as traders worried about a prolonged economic slowdown.

Nearly 60 new coronavirus cases were confirmed in the U.S. on Thursday. Globally, virus cases surpassed 100,000 and over 3,300 deaths have been reported. Dip (in gold) should be bought up fairly quickly as the day goes on. As long as this virus is in the headlines out there, expect gold to continue higher.

Oil slips amid demand concern, OPEC+ deal for deeper output cuts

Oil slid nearly 1% on Friday as worries about global oil demand and economic growth slowdown caused by the coronavirus outbreak were heightened by concern over non-OPEC crude producers not yet having agreed to cut output further to support prices. Brent crude LCOc1 fell 48 cents, or 0.96%, to $49.51 per barrel by 0337 GMT, while U.S. West Texas Intermediate (WTI) CLc1 was down 38 cents, or 0.83%, at $45.52 per barrel.

The Organization of the Petroleum Exporting Countries (OPEC) on Thursday pushed for crude output by OPEC and associated producers – a group known as OPEC+ – to be cut by an extra 1.5 million barrels per day (bpd) in total until the end of 2020.

 

Most Metal ETPs Are Getting Killed Right Now.

The mayhem in industrial metals is creating waves across $1.4 billion of exchange-traded products tracking the sector.

Their prices are whipsawing, investors are bailing, and some may be profiting spectacularly from the sector’s collapse. While base metals secured a reprieve Friday, they’ve been rattled by a sell-off over fears for Chinese demand and the Sino-U.S. trade war, after copper breached the $6,000 mark this week. Here’s how the tumult is rattling through the passive-product industry. Miners Mauled Firms that extract copper have sold off, putting pressure on the $71 million Global X Copper Miners ETF, ticker COPX.

    

TECHNICAL VIEW

MCX Gold last week showed straight bullish movement and pulled up towards the psychological resistance level of 45000 and closed around 44000. For upcoming week if price trades above 44500 levels then it can give upside movement up to next resistance level of 45500. On lower side, if prices slide towards lower levels than 43000 will act as vital support level below this momentum can find next support level at 42000.

STRATEGY

Better strategy in MCX GOLD is to sell below 43000 for the target of 42200 with stop loss of 45000.

TECHNICAL VIEW

MCX Silver last week showed bullish movement after broke a resistance of 47870. For upcoming trading session we will continue to suggesting bullish trend, if price maintains above 48000 levels and after that 49500 to 50500 will act as a next important resistance level. On lower side it has immediate support at 45000 and if price sustains below this level then it will take support towards the level of 43000.

STRATEGY

Better strategy in MCX SILVER is to sell below 46000 for the target of 45000, with stop loss of 47000.

TECHNICAL VIEW

MCX Crude oil last week showed sideways to bearish movement in whole week and found near to its support zone i.e. around 3150 levels. For upcoming period if bearishness will active towards support level of 3100 then after that 2800 will be next immediate support and if price takes bullish movement from current levels towards upside side then it can test resistance level of 3400 and after that 3700 will act as a next resistance level.

STRATEGY

Better strategy in MCX CRUDE is to sell below 3100 for the target of 2900, with stop loss of 3300.

TECHNICAL VIEW

MCX Copper last week showed upward movement after took important resistance level of 434. 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.

STRATEGY

Better strategy in MCX COPPER is to buy above 435 for the target of 440, with stop loss of 428.

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