Weekly Commodity Market Report

Gold slips amid rising equities as Mideast tensions fade

Gold prices fell on Friday and were set for their worst week in five as easing tensions in the Middle East prompted investors to move back to riskier bets.Spot gold XAU= fell 0.3% to $1,547.55 per ounce by 0334 GMT. Prices fell as much as 1% to their lowest since Jan. 3 at $1,539.78 on Thursday.

Meanwhile, global stocks rallied to hit record highs after comments from U.S. President Donald Trump and Iran pointed to de-escalation in military tensions, even as the U.S. increased sanctions on Iran. Indicative of sentiment, holdings of the world’s largest gold-backed exchange-traded fund SPDR Gold Trust GLD, fell 0.5% to 882.12 tonnes on Thursday.

Oil prices fall further as threat of Middle East war recedes

Oil prices dropped on Friday extending days of losses as the threat of war in the Middle East receded and investors switched attention to economic growth prospects and the rise in U.S. crude oil and product inventories.Brent crude LCOc1 fell 20 cents, or 0.3%, at $65.17 by 0240 GMT, and is heading for its first decline in six weeks, down 5%. WTI was down 20 cents, or 0.3%, at $59.36 and also on track for a first weekly drop in six, nearly 6% from last Friday’s close based on the latest prices. Oil is now below where it was before a U.S. drone strike killed a top Iranian general on Jan. 3, with Iran responding with a ballistic missile attack on Iraqi air bases hosting U.S. forces this week that left no casualties.

Copper futures rise on positive demand

Copper prices on Thursday traded up 0.14 per cent at Rs 452.50 per kg in futures market on the back of pick-up in spot demand. On the Multi Commodity Exchange, copper contracts for delivery in January traded higher by 65 paise, or 0.14 per cent, at Rs 452.50 per kg in a business turnover of 2,128 lots. Similarly, the metal for delivery in February edged up by 75 paise, or 0.17 per cent, to Rs 453 per kg in 111 lots.

Analysts attributed the rise in copper prices to raising of bets by participants driven by a pick-up in spot demand.

TECHNICAL VIEW

MCX Gold last week showed straight bullish movement and drags down towards its support level of 39500 and closed around it. For upcoming week if price trades above 40500 levels then it can give upside movement up to next psychological resistance level of 41000. On lower side, if price slide towards lower side than 39500 will act as vital support level below this momentum can find next support level at 38000.

STRATEGY

Better strategy in MCX GOLD is to buy above 40000 for the target of 40500 with stop loss of 39500.TECHNICAL VIEW

MCX Silver last week showed sideways to bullish movement in first two sessions and after that drags down towards the support level of 46140. For upcoming trading session we will continue to suggesting bearish trend, if price sustains below 46000 levels and after that 45000 to 44000 will act as a next important support level. On higher side it has immediate resistance at 48500 and if price maintain above this level then it will take towards the resistance level of 50000.

 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 bearish movement in whole week and close near to its support zone i.e. around 4170 levels. For upcoming period if  bearishness will active towards support level of 4100 then after that 4000 will be next immediate support and if price takes bullish movement from current levels towards upside side then it can test resistance level of 4400 and after that 4600 will act as a next resistance level.

 STRATEGY

Better strategy in MCX CRUDE is to sell below 4100 for the target of 3900, with stop loss of 4300.

TECHNICAL VIEW

MCX Copper last week showed bullish movement, in last trading session pull towards the resistance level of 453.45. For upcoming session, if price maintains above 455 levels then it may give more upside movement towards next resistance level of 460. On lower side it has support level at 445 and if sustain below 445 level then it will move down towards the next major support level of 440.

STRATEGY

Better strategy in MCX COPPER is to sell below 445 for the target of 440, with stop loss of 450.

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