Weekly Commodity Report

On Weak U.S. Data Gold Surges

On Friday gold prices were higher after disappointing jobs data pushed the U.S. dollar lower. A stronger dollar and rising interest rates have weighed on gold in recent months, still remained near two-week lows. According to official data released on Friday, Nonfarm payrolls (NFP) rose by 157,000 in July. On Wednesday the Fed left interest rates unchanged, as expected, but pointed to the potential for increased rate hikes due to strong U.S. economic data.

Oil Prices Settle Lower on Fears Trade War Could Hurt Demand

On Friday crude oil crude oil prices settled lower, as concerns about global demand growth in the wake of escalating U.S.-China trade tensions kept a lid on gains overshadowing data showing the number of U.S. rigs drilling for oil fell. Crude Oil prices attempted to pare losses on the back of the upbeat rig count data, but ultimately settled in lower as earlier losses from fears that a trade war between the China and U.S.- one the largest buyers of American crude – would stifle demand. On Friday Oilfield services firm Baker Hughes reported that the number of U.S. oil drilling rigs in operation fell by 2 to 861, pointing to tightening U.S. output. Assumption for steep losses of Iranian crude from the market was scaled back somewhat after U.S. President Donald Trump made an offer earlier this week to meet with Iranian counterpart Hassan Rouhani at “any time,” without restrictions.

Mostly Higher Metal Prices as Subdued Jobs Report Pressures Dollar

On Friday Metal prices were mostly higher as fears the latest twist in the U.S.-China trade saga may lead to a full-blown trade war were offset by weakness in the dollar. On weakened the dollar weakened on concerns that the U.S.-China tit-for-tat trade spat was headed for full-blown trade war after China hit back against President Trump\’s recent threat to impose harsher trade restrictions on good imported from China. Copper prices rose 0.79% to $2.76, while zinc prices rose 1.62% at 2,606.50.

TECHNICAL VIEW

Gold:

MCX Gold last week still continued with bearish trend and close around its major support level of 29500. For upcoming week if it breached 29500 then we will continue to suggest the bearish wave up to next strong support i.e. 29100. On upward side it has important resistance of 29900 and if price maintains above this level then it can push for quite recovery from lower levels up to its next resistance of its upper key line i.e. 30300 and after breakout it may continue with bullish trend.

STRATEGY

Better strategy in MCX GOLD is to sell below 29500 for the target of 29100 with stop loss of 30100.

TECHNICAL VIEW

SILVER:

MCX Silver last week was volatile due to its expiry. For upcoming trading session it may give some lower side movement and test its lower channel line i.e. 39900 levels and if price breaks this key line then it will continue with down trend and test next support of 38600. On upward side it has major resistance level of 40200 and if it breaks and maintains above this level then it settles on higher side as well as take recovery up to its upper key line of 40900 levels.

STRATEGY

Better strategy in MCX SILVER is to sell below 39450 for the target of 38800, with stop loss of 40500.

TECHNICAL VIEW

CRUDE:

MCX Crude oil last week still showed sideways to bullish movement but unable to breaches its upper key line of 5180 and settles below this level. For upcoming week if it breaks 5180 level then we expect for more bullish movement up to next resistance of 5250. On lower side it has important support level of 4900 and if price sustains below this level then if will take correction towards next support i.e. 4800 levels and after that it continues with down trend.

STRATEGY

Better strategy in MCX CRUDE is to sell below 4950 for the target of 4750, with stop loss of 5200.

TECHNICAL VIEW

COPPER:

MCX Copper last week showed bearish movement after recovery and breached its major support level of 420. For upcoming period it may declines for tests its major support level of 410 and after that bearish trend will continue. On upward side it has strong resistance of 430 and if price maintains above this level then it can take some recovery and price may also goes upside up to next important resistance level of 440 and after that 450 will be next resistance.

STRATEGY

Better strategy in MCX COPPER is to sell below 410 for the target of 400, with stop loss of 425.

Guar gum showed bullish movement last week, and found its important resistance level of 9945. If the prices sustains below its support level of 9460 then the bearish momentum will take prices up to 9100 level. On other hand if the prices maintains above 10000 then prices may find the next resistance level of 10250.

Soyaref showed sideways to bearish movement last week and found the support level of 728. If the prices sustain below its support level of 728 then the bearish momentum will take prices up to 715 levels. On other hand if the prices maintains above 736 then prices may find the next resistance level of 745.

Turmeric showed sideways to bearish movement last week, and able to close around its important resistance level of 7200. If the prices maintain above its resistance level of 7400 then the bullish momentum will take prices 7500 level. On other hand if the prices sustains below the support level of 7100 then prices find the next support level of 6950.

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