Daily Commodity News Letter
Gold dropped amid a firmer dollar as markets waited to see if U.S. President Donald Trump will face hurdles on his economic agenda. Fed’s Kaplan said that the U.S. central bank should be moving deliberately but patiently to remove monetary policy accommodation.U.S. Home resales fell more than expected in February amid a persistent shortage of houses on the market that is pushing up prices and sidelining prospective buyers. We expect gold prices to trade sideways today, international markets are trading lower by 0.09 percent at $1244 per ounce. Uncertainty with regards to policies in the US and elections in the Euro are will keep the safe haven demand intact. On the MCX, gold prices are expected to trade sideways. A sharp downside was seen on charting, for the coming days we are expecting the prices to approach 28900 levels where profit booking will take place and below this handle some fresh selling can take place for levels. Looking for downside 28250 will be immediate resistance.
Silver dropped amid growing expectations among traders that the Federal Reserve will raise interest rates at its March policy meeting next week. The U.S. economy is on track to grow at a 1.3 percent annualized pace in the first quarter following the latest data on domestic vehicle sales and factory orders. Investors are now awaiting non-farm payrolls data for February on Friday, seen as a key barometer of the U.S. economy. The Silver is in long- short- term bull phase .Currently Silver is moving sideways The Silver is now trading in oversold level. The oscillator is showing BUY signal .In last 1 month volatility is very less and fresh buy can be considered in the Silver if it close above 42970 or buy with strict stop at 39649. The Silver is now trading in oversold level. The oscillator is showing buy signal for short term Silver is in hold long position. Support for the Silver is 41130.Resistance for the Silver is 42015.
Oil prices dipped on Thursday stuck near four-month lows because of investor concerns that OPEC-led supply cuts were not yet reducing record U.S. crude inventories. OPEC’s largest producer Saudi Arabia expects crude exports to the United States in March will fall by around 300,000 barrels per day from February in line with the supply-cut agreement OPEC struck in November a Saudi energy ministry official said. OPEC has broadly met its commitments to reduce output but non-OPEC producers have yet to fully deliver on pledged cuts and U.S. shale oil producers have been pumping more oil after crude prices recovered from last year’s drop below $30. Crude stocks in the United States the world’s largest oil consumer were a record 533 million barrels last week after a bigger-than-expected 5 million barrel jump the U.S. Energy Information Administration said. In the week ended March 17 U.S. imports from Saudi Arabia unexpectedly rose by more than 200,000 bpd to 1.28 million bpd, after a sharp decline the prior week. We expect crude oil prices to trade sideways on the back of short covering after drop in prices.
Copper steadied on Thursday, but was still near one-week lows on news that operations at the world’s top producing copper mine in Chile would resume. Workers at BHP Billiton’s Escondido mine agreed to go back to work on Saturday ending a 43-day stoppage. Supply disruptions have underpinned copper as two other large mines had shut due to labor disputes. Brazilian group Votorantim has halted operations at its zinc smelter Cajamarquilla in Peru while miner Milpo, declared force majeure on Wednesday due to the floods. We expect base metal prices likely to trade volatile on the back of mixed fundamentals.
HZL has returned excess cash to shareholders for 2 years in a row now. With good earnings outlook riding stable zinc prices and capacity ramp up, we expect balance sheet to remain healthy. The Zinc is in long- short- term bull phase .Currently Zinc is moving sideways The oscillator is showing BUY signal .In last 1 month volatility is very less and fresh Buy can be considered in the Zinc if it close above190 or buy with strict stop at 175. The oscillator is showing BUY signal for short term Zinc is in hold long position. Support for the Zinc is 178.Resistance for the Zinc is 189.
The Lead is in long- short-medium- short- term bull phase .Currently Lead is showing some up move after small correction and trend is strong and supported with good volume the open interest is not increasing with trend. Caution note buying at higher levels seems decreasing. The oscillator is showing buy signal for short term Lead is in hold long position. Support for the Lead is 157. Immediate resistance for Lead is 157.
The Nickel is bearish for medium-long term .Currently Nickel is in strong downtrend and the trend is supported with good volume the open interest is not increasing with trend. Noting point is selling at lower levels seems decreasing. The oscillator is showing sell signal for short term Nickel is in sell position. Immediate support for Nickel is 640.Resistance for the Nickel is 675.
Public sector National Aluminum Company Ltd today said it plans to augment production of cast metal by 12 percent in the next financial year as the aluminum market has started firming up. With the aluminum market firming up, the Navaratna PSU foresees sunny days ahead and plans to increase cast metal production by 12 percent in the next fiscal National Aluminum Company Ltd (Nalco) said. The oscillator is showing BUY signal for short term Aluminum is in hold long position. Support for the Aluminum is 121. Immediate resistance for Aluminum is 127.
GOLD 28900 28250
SILVER 41600 39800
CRUDE 3250 3090
COPPER 390 377
LEAD 157 146
NICKEL 675 640
ALUMINIUM 127 121
ZINC 189 178