Weekly Commodity Report

  

PRECIOUS-Gold faces worst month since June 2018; markets seek clarity on trade talks

Gold prices gained on Friday as markets awaited further developments on U.S.-China trade talks after Beijing said it would retaliate against Washington for passing a law in support of Hong Kong protesters.

China warned on Thursday it would take “firm counter measures” in response to U.S. legislation backing anti-government protesters in Hong Kong. signing of the bill) takes another step back at the possibility of a trade agreement with China, which really upset them quite a bit. That is why we saw equities come off and gold futures push up,” said Phillip Streible, senior commodities strategist at RJO.

 

Oil slumps but sets monthly gain ahead of OPEC meeting

Oil prices fell on Friday, with U.S. crude dropping more than 4%, on fresh trade tensions and record high U.S. crude production, but they still ended the month higher as OPEC watchers expect an extension next week to a pact to throttle oil output beyond March.

Brent crude futures  settled down $1.44 at $62.43 a barrel, and was down 1.5% on the week. Still, the contract posted its biggest monthly gain since April with a rise of about 6%. West Texas Intermediate (WTI) futures  settled down $2.94 at $55.17, falling of 4.1% on the week, after three consecutive increases. On a monthly basis, WTI is poised for a jump of about 2.3%, its highest since June.

Base metals: Copper, lead, zinc futures up on spot demand

Nickel futures on Friday declined by Rs 2.40 to Rs 1,024 per kg due to reducing of positions by speculators amid sluggish demand in spot market. On the Multi Commodity Exchange, nickel contracts for December delivery fell by Rs 2.40, or 0.23 per cent, to Rs 1,024 per kg with a business turnover of 1,892 lots.

Copper prices on Friday traded 0.09 per cent up at Rs 434.30 per kg in futures trade amid pick-up in spot demand. On the Multi Commodity Exchange, copper contracts for December delivery traded higher by 40 paise, or 0.09 per cent, at Rs 434.30 per kg in a business turnover of 5,869 lots.

TECHNICAL VIEW

MCX Gold last week showed sideways to bullish movement in whole week and found a supprt of 37450 and closed above it. For upcoming week if price trades above 37500 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 37000 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 38000 for the target of 38800 with stop loss of 37450.

TECHNICAL VIEW

MCX Silver last week showed sideways to bullish movement and pull towards the resistance level of 45000. For upcoming trading session we will continue to suggesting bearish trend, if price sustains below 44500 levels and after that 43900 to 42000 will act as a next important support level. On higher side it has immediate resistance at 45000 and if price maintain above this level then it will take towards the resistance level of 47000.

STRATEGY

Better strategy in MCX SILVER is to sell below 44000 for the target of 43000, with stop loss of 45000.

TECHNICAL VIEW

MCX Crude oil last week showed sideways bearish movement in last day of the week and close at support zone i.e. around 3950 levels. For upcoming period if  bearishness will continue towards next support level of 3700 and after that 3500 will be next immediate support and if price takes bullish movement from current levels towards upside side then it can test resistance level of 4100 and after that 4250 will act as a next resistance level.

STRATEGY

Better strategy in MCX CRUDE is to buy above 4000 for the target of 4150, with stop loss of 3850.

TECHNICAL VIEW

MCX Copper last week showed sideways to bearish movement and also tests support level i.e. around 432. For upcoming session, if price maintains above 429 levels then it may give more upside movement towards next resistance level of 442. On lower side it has psychological support level at 425 and if sustain below 425 level then it will move down towards the next major support level of 420.

STRATEGY

Better strategy in MCX COPPER is to buy above 432 for the target of 438, with stop loss of 428.

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