Weekly Commodity Market Report

 

United States-Sino Trade Optimism Stalls 5-Day Gold Rally

On Friday a five-day rally in gold that gave bullion bugs their best winning streak in 17 months finally came to an end. The bullish trend snapped on reports that President Donald Trump wished to meet with his Chinese counterpart Xi Jinping soon to try to seal a comprehensive trade deal that would end a bitter year of tit-for-tat tariffs between the two economic superpowers. For gold what’s good for commodities isn’t necessarily good, and what’s good for U.S.-China trade, particularly, isn’t good, either, given the yellow metal’s unique position as a hedge to financial troubles.

 

On U.S. Jobs Numbers amid Shale Worries Crude Oil Jumps 

At intervals worries about the economy are off again, giving oil a bid after a huge jump in U.S. nonfarm payrolls. On Friday New York-traded West Texas Intermediate crude and London’s Brent oil rose about 3% each as stocks on Wall Street surged on the U.S. employment report for January, which showed a growth of 304,000 jobs versus an estimated rise of 165,000. On March 1, Oil prices rose through most of last week as the Trump administration imposed sanctions against Venezuelan oil amid data showing a deep slash in Saudi and OPEC crude exports to the U.S. The Federal Reserve’s decision not raise interest rates and also be patient with future tightening also bolstered risk appetite across markets.

On the weekend base metals prices higher in mixed trading

On February 1, on the London Metal Exchange base metals prices were mixed at the close of trading on Friday, against consolidating 0.5% lower over the afternoon, copper’s three-month price remains well supported above $6,100 per tonne. Compelling inflows of zinc, copper and aluminium material into China’s SHFE warehouses this morning also prompted negative price sentiment. LME volumes were moderate over the day’s trading, Across the LME’s warehouse network, total inventories in base metals remain in a downtrend.

TECHNICAL VIEW

MCX Gold last week showed strong bullish movement and broke its weekly resistance i.e. 32600 levels as shown in weekly chart as well as also able to close above this level. For upcoming week upward trend will remain continue and price may find next important resistance of 33500 and if price takes reverse movement from this level then it shows some correction from higher to lower side and price may find immediate support of 33100 and if price sustains below this level then 32800 will act as a next crucial support level.

STRATEGY

Better strategy in MCX GOLD is to buy above 33500 for the target of 34000 with stop loss of 32900.

TECHNICAL VIEW

MCX Silver last week showed upward side movement after a long time and broke major resistance level of 39700 and also closes above this level. For upcoming session bullish scenario will remain active and price can test next strong resistance level of 40800. On lower side it has initial support of 40000 and if price breaks this level then it may push for sharp correction from higher levels and this momentum can take price towards next support level of 39500 and below this level 39000 will be next support as well as trend may also change.

STRATEGY

Better strategy in MCX SILVER is to sell below 40000 for the target of 39000, with stop loss of 41200.

TECHNICAL VIEW

MCX Crude oil last week showed sideways to Bullish movement and broke its important resistance level of 3900 as well as able to close above this level. For upcoming trading session if price maintains above 3900 the we will continue to suggest  up trend up to next resistance of 4050 and after that price may find next resistance of 4150. On lower side if price takes some correction then test major support level of 3800 and below this level trend may also change as well as 3700 will acts as a next support.

STRATEGY

Better strategy in MCX CRUDE is to buy above 4000 for the target of 4200, with stop loss of 3750

TECHNICAL VIEW

MCX Copper last week took quick recovery from lower levels and it can also broke its bearish resistance line i.e. 435 levels. For upcoming period it will continue with its bull run and price may test next immediate resistance of 445. On lower side it has strong support of 430 and if price breaks and sustains below this level then this momentum can take price towards next support of 420 as well as shows some correction and after that 410 will be next important support.

STRATEGY

Better strategy in MCX COPPER is to buy above 440 for the target of 450, with stop loss of 425.

Guar gum showed sideways to bearish movement last week, and found its important support around the level of 8550. If the prices sustains below its support level of 8550 then the bearish momentum will take prices up to 8300 level. On other hand if the prices maintains above 8900 then prices may find the next resistance level of 9100.

Soyaref showed bullish movement last week and found the resistance level of 775.50. If the prices maintain above its resistance level of 779.50 then the bullish momentum will take prices up to 788 levels. On other hand if the prices sustain below 759.50 then prices may find the next support level of 750.

Turmeric showed bearish movement last week, and able to found its important support level of 6334. If the prices maintain above its resistance level of 6550 then the bullish momentum will take prices 6720 level. On other hand if the prices sustains below the support level of 6330 then prices find the next support level of 6200.

 

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