Weekly Commodity Report

As Dollar Recovers Gold Prices Slip

On Friday in Asia Gold prices fell as the U.S. dollar recovered. For February delivery Gold Futures slipped 0.45% to $1,262.25 at 1:26 AM ET (06:26 GMT) on the Comex exchange, while the U.S. dollar index, tracking the greenback against a basket of six currencies, gained 0.2% to 95.938. On Wednesday The Fed raised rates as expected by a quarter points at its December meeting. Yet it also sent out mixed signals to the market by lowering its economic forecast for 2019, while hinting that it would continue raising rates, but at a slower pace. Most Fed governors said they anticipate only two rate hikes next year, versus previous expectations for three.

Crude Oil and Stocks Are Locked Together in a Downward Spiral

Crude oil’s biggest problem is panic over the economy — and the correlations show it, for all the talk of Organisation of the Petroleum Exporting Countries (OPEC)supply cuts and surging shale production.At the same time the last oil price crash in 2014, the S&P 500 Index and Brent crude moved in opposite directions. Oil’s fall failed to prove much of a drag on U.S. equities and vice-versa, as represented by a strong negative correlation coefficient of .65 between the two assets. Such changed during the commodity’s current collapse. Brent and the S&P are moving in tandem: The correlation has turned positive and strengthened to a robust .75.

On weaker US dollar base metals prices rise

On Friday December 21 most base metals prices on the Shanghai Futures Exchange continued to rise during early Asian trading after the dollar fell following some disappointing economic data from the United States that stoked concerns of a weakening economy. Althought US Federal Reserve Chairman Jerome Powell emphasized the boards’ confidence over a sustained strong economic growth for the US, pushing them to raise interest rates again this week, market participants were quick to note his less hawkish statements in the central bank’s accompanying statement and indications of fewer than expected increases in 2019.

TECHNICAL VIEW

MCX Gold last week was quite volatile and also took reverse movement from its major resistance level i.e. 31600. For upcoming week it may continue to trades on lower side as well as test next immediate support of 31000 and if price sustains below this level then it can continue with bearish scenario towards next support 30700 and on upward side it has it has resistance level of 31500 and above this level it will push for quick recovery up to next resistance of its upper channel line i.e. 31800.

STRATEGY

Better strategy in MCX GOLD is to buy above 31500 for the target of 31900 with stop loss of 30900.

TECHNICAL VIEW

MCX Silver last week broke its bearish resistance line i.e. 37800 as well as also tests major resistance level of 38000 and took reverse movement as seen on daily chart. For upcoming trading session it will continue with down trend towards its bullish support line of 36900 and if price breaks this level then 36500 will be next crucial support. On upward side it has initial resistance of 37600 and if price maintains above this level then we expect recovery up to next resistance of 38100 as well as trend may also change.

STRATEGY

Better strategy in MCX SILVER is to sell below 37000 for the target of 36000, with stop loss of 38500.

TECHNICAL VIEW

MCX Crude oil last week showed strong bearish movement and broke its immediate support of 3400 and also sustains below this level. For upcoming session we will continue to suggest the bearish trend towards the next support of 3100 and after that 3000 will act as a strong support. On the higher side it has important resistance of its channel line i.e. 3500 levels and if price maintains above this level then it can test next resistance of 3600 as well as takes some recovery from levels.

STRATEGY

Better strategy in MCX CRUDE is to sell below 3200 for the target of 3000, with stop loss of 3500.

TECHNICAL VIEW

MCX Copper last week showed sideways to bearish movement and broke its bearish key line of 435 as seen on daily chart. For upcoming period it will continue with downward scenario and price may test next support of 410 and after that 400 will act as a next major support. On upper side it has immediate resistance of 430 and if price holds this level then it shows sharp recovery up to next resistance of 440 and above this level trend may also change.

STRATEGY

Better strategy in MCX COPPER is to buy above 427 for the target of 437, with stop loss of 415.

Guar gum showed sideways to bearish movement last week, and found its important support around the level of 8388. If the prices sustains below its support level of 8350 then the bearish momentum will take prices up to 8120 level. On other hand if the prices maintains above 8800 then prices may find the next resistance level of 9100.

Soyaref showed bearish movement last week and found the support level of 726. If the prices sustain above its resistance level of 723 then the bullish momentum will take prices up to 716 levels. On other hand if the prices maintains below 734 then prices may find the next support level of 740.

Turmeric showed bearish movement last week, and able to found its important support level of 6600. If the prices maintain above its resistance level of 6770 then the bullish momentum will take prices 6915 level. On other hand if the prices sustains below the support level of 6530 then prices find the next support level of 6380.

(Click to submit your details) Just one step to get best trading tips and Recommendation.

Leave a Reply