Today Commodity News Letter
Gold prices rallied as U.S. dollar stepped further away from a 14-year peak following the release of commentary from the Federal Reserve. Minutes from the Fed’s December policy meeting showed most officials thought the U.S. economy could grow more quickly because of tax cuts and infrastructure spending. Gold being the best in commodity segment for the buyers. From the level of 28130 there was a resistance which leads to the yellow metal week high of the level 27010. It made the resistance and we are expecting that if it sustains above 28130 resistances then it can breach to the next resistance level of 28800. We are positive for this Gold prices and it seems like 29000 levels would be tested soon.
Silver prices gained as the dollar slipped with traders waiting for U.S. jobs data for clues on the pace of possible U.S. interest rate hikes in 2017. Fed policymakers “emphasized their considerable uncertainty” about future economic policy changes. The number of Americans filing for unemployment benefits fell near a 43-year-low last week, suggesting the economy ended 2016 with strong momentum. On its one-year chart we can see that silver’s corrective action from early jun has brought it all the way back to its steadily rising 200-day moving average, a classic buy spot where a potential intermediate base has formed.
Crude oil gained supported by strong U.S. economic data and optimism that crude producers would abide by an agreement to limit output. Libya’s NOC confirmed that pipelines leading from Sahara and El Feel fields had reopened, and hoped to add 2.7 Moped productions over next three months. Oil markets are expected to remain well-supplied despite the planned OPEC and non-OPEC reductions.
Copper rising in daily chart was seen from past two weeks, if it sustains above 386 levels, on the positive side it would be good for the buyers to book profit around 394 resistances. This Chinese metal if sustains above 386, can shoot up to 400 in the coming weeks, giving a major breakout of 386 resistance level.
Zinc prices are following trend line from a long time and we can see that the price can pull back up to major suppo0rt 166. Sustaining on overbought zone, pullbacks can be we are expected in Zinc. From last week we can see that there were some corrections taking place. This can lead to 178 handle. Analysts said the weakness in zinc at futures trade was mostly attributed to trimming of positions by speculators amid a weak trend at the domestic spot markets but firm overseas trend capped the losses.
Lead performing well on the buyer side and gave a good profit booking to buyers from last three days. Analyzing the daily chart we feel a cool up in the prices of lead as it closed near the opening of the week. Since the commodity closed with dominant sellers, so a rising up can be seen in coming week where support falls at 134 and resistance at 141.
In last week, nickel makes new high and finally closed at 701.10. We saw a sharp side way movement was seen on charting .From last two week there was mixed movement seen in the nickel. For the coming days we are expecting the prices to approach 707 levels where profit booking will take place and above this handle some fresh side way market can take place for levels. Looking for side way 679 will be immediate support
Aluminum took some correction for the course of week and gave the positive closing for the last day prices closed @ 116.95. This indicates the bullish trend in daily chart. If it breaks the resistance of 118 then it can further breach up to 121 on higher side for the coming week or else can fall till 118 will be the first resistance for the rising price of aluminum
GOLD 28130 27010
SILVER 41200 38545
CRUDE 3780 3550
COPPER 386 370
LEAD 141 134
NICKEL 707 679
ALUMINIUM 118 114
ZINC 180 166