Weekly Commodity Report

Precious metal Prices Hold Steady Ahead of G7 summit

Precious metal prices were little changed in European morning trade on Friday as investors looked forward to the start of the Group of Seven summit. France and Germany warned the U.S. that they would not sign a joint statement without concessions, but the American top economic adviser Larry Kudlow warned this week that U.S. President Donald Trump would not back down from his tough stance on trade. In a session with no major U.S. economic data, market participants will focus on the G7 meeting which kicks off on Friday in Quebec. Donald Trump showed no signs of conciliation late Thursday when he accused France and Canada of “charging the U.S. massive tariffs and create non-monetary barriers”.

Crude Oil Prices Fall on China Demand, U.S. Output Worries

Crude Oil prices fell from earlier gains on Friday amid increasing U.S. output and signs of weakening demand in China. Only Russia currently produces more, at around 11 million bpd. Crude Domestic production – hit a record of 10.8 million barrels per day (bpd), according to the EIA’s weekly report. According to the General Administration of Customs. That was compared with 9.6 million bpd in April; May crude oil imports in China fell from a record high the month before, with shipments at 39.05 million tonnes, or 9.2 million barrels per day (bpd).

Mix up start for base metals prices amid increasing trade tensions

With copper leading aluminium and nickel higher, while the rest were little changed to weaker, Three-month base metals prices on the London Metal Exchange were split into two camps on the morning of Thursday June 7. Aluminium and nickel followed the red metal upward with gains of 0.3% and 0.4% respectively. The three-month LME copper price, up by 0.6% at $7,281 per tonne, continues to be supported by supply-side fears stemming from labor negotiations at Chile’s Escondida mine and the closure of Sterlite’s Tuticorin mine in India.

TECHNICAL VIEW

Gold:

MCX Gold last week took reverse movement from its major support level i.e. 30850 and showed sideways to bullish movement. For upcoming trading session it may continue with its bull run and goes upside up to next important resistance level of 31650. On lower side it has strong support level of 31000 and if price breaks and sustains below this level then it can take some correction from higher to lower level towards next support level of 30700.

STRATEGY

Better strategy in MCX GOLD is to sell below 31000 for the target of 30500 with stop loss of 31600.

TECHNICAL VIEW

SILVER:

MCX Silver last week showed sideways to upward movement and broke its important resistance level of 40300. For upcoming session it can give more bullish movement and price may goes on higher side up to next major resistance level of 40800. On downward side if it take some correction from higher to lower side then price slides towards next support of 39900 and after that 39200 will as a next important support level and it may continue with bearish trend.

STRATEGY

Better strategy in MCX SILVER is to sell below 40000 for the target of 39000, with stop loss of 41500.

TECHNICAL VIEW

CRUDE:

MCX Crude oil last week showed sideways to bearish movement but at the end of the week it took some recovery from lower to higher level and close around its major resistance level of 4500. For upcoming weak if it breaks and maintains above 4500 then it will give more positive movement and test next important resistance level of 4600. On lower side it has crucial support level of 4380 and if it sustains below this level then it will push for some correction and price goes down towards 4300 levels.

STRATEGY

Better strategy in MCX CRUDE is to buy above 4500 for the target of 4650, with stop loss of 4300.

TECHNICAL VIEW

COPPER:

MCX Copper last week showed strong bullish movement and broke its major resistance level of 470. For upcoming trading session it may give more upward side movement and test its next important resistance level of 495. On lower side if it take some correction then it can test support of 480 and if price breaks and sustains below this level then price slides towards 470 levels and we expect trend reversal from bullish to bearish.

STRATEGY

Better strategy in MCX COPPER is to sell below 482 for the target of 472, with stop loss of 497.

Guargum showed bearish movement last week, and found its important support level of 7285. If the prices sustains below its support level of 7250 then the bearish momentum will take prices up to 7000 level. On other hand if the prices maintains above 7900 then prices may find the next resistance level of 8150.

Soyaref showed sideways to bearish movement last week and found the support level of 753.70. If the prices sustain below its support level of 753 then the bearish momentum will take prices up to 745 levels. On other hand if the prices maintains above 765 then prices may find the next resistance level of 775.

Turmeric showed sideways to bearish movement last week, and able to close around its important support level of 7000. If the prices maintain above its resistance level of 7200 then the bullish momentum will take prices 7400 level. On other hand if the prices sustains below the support level of 6980 then prices find the next support level of 6800.

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