Weekly Commodity Market Report

Gold falls over 1% as Brexit, Sino-U.S. trade worries ease

Gold fell over 1% on Friday, en route to its biggest weekly decline since March, as easing concerns about the U.S.-China trade conflict and Britain’s exit from the European Union renewed appetite for riskier assets.

Investors expect top-level U.S.-China talks to result in a partial trade deal, which would dial down the 15-month dispute and delay a U.S. tariff hike scheduled for next week. Gold is often used as a hedge against political and economic uncertainties. Analysts said gold still looked bullish both fundamentally and technically, in the longer term. If China gets a deal, Chinese demand for gold should rise as it is the largest gold consumer in the world.

    

Oil Jumps as Turkey’s Military Move Outweighs Bearish Data

Record crude output for the U.S. wasn’t enough to stop oil prices climbing in the face of more upheaval in the Middle East Wednesday.

Turkey launched an invasion of northern Syria in pursuit of Kurdish militias that it suspects of helping separatists within Turkey. The operation began with massed air raids, including against civilian targets, according to a spokesman of the Kurdish-led Syrian Defence Force. Looking to the data, the latest report from the Energy Information Administration said that U.S. crude output rose to a record high of 12.6 million barrels per day last week.

All base metal stocks in Shanghai Futures Exchange-approved warehouses, except tin, rose in the week to Friday October 11, after trading activity resumed following the end of the week-long Golden Week holiday in China. Copper stocks registered the largest increase in percentage terms, rising by 13.9% or 16,401 tonnes from September 30, to 134,509 tonnes as of Friday. The largest inflow in copper inventories was registered at Zhongchu Wusong warehouse in Shanghai, at 5,165 tonnes or 31.2% of its stocks. This brought its copper stocks to 21,725 tonnes. Tin was the only base metal to record a drop in stocks on Friday, edging down by just 26 tonnes to 4,489 tonnes from September.

      

TECHNICAL VIEW

MCX Gold last week showed sideways to bearish movement in whole week and after breaking 38000 support level found next support around trendline of i.e. 37600. For upcoming week if price trades above 38550 levels then it can give upside movement up to next psychological resistance level of 39000. 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 buy above 38650 for the target of 39100 with stop loss of 38000.

TECHNICAL VIEW

MCX Silver last week showed sideways movement and drags down towards the support level of 44800 and closed around it. For upcoming trading session we will continue to suggesting weak trend, if price sustains below 44500 levels and after that 43200 will act as a next important support level. On higher side it has immediate resistance at 46500 and if price maintain above this level then it will take towards the resistance level of 48500.

 STRATEGY

Better strategy in MCX SILVER is to sell below 44500 for the target of 43000, with stop loss of 46000.

TECHNICAL VIEW

MCX Crude oil last week showed bullish movement in all sessions and correction on higher side leads towards the trend line resistance i.e. around 3900 levels. For upcoming period if  bullishness will active towards next resistance level of 4000 and after that 4300 will be next immediate resistance and if price takes lower movement from current levels towards down side then it can test support level of 3700 and after that 3500 will act as a next support level.

 STRATEGY

Better strategy in MCX CRUDE is to buy above 3900 for the target of 4100, with stop loss of 3650.

TECHNICAL VIEW

MCX Copper last week showed sideways to bullish movement and also tests resistance level i.e. around 443.50. For upcoming session, if price sustains below 439 levels then it may give more down side movement towards next support level of 430. On higher side it has psychological resistance level at 445 and above this price level it will lift up for quick recovery from lower to higher side up to next resistance of 460 and trend may also change.

STRATEGY

Better strategy in MCX COPPER is to buy above 445 for the target of 455, with stop loss of 435.

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