Daily Commodity News Letter
Gold prices edged lower on Friday and were headed for a weekly decline as positive U.S. economic data buoyed the dollar but uncertainty over upcoming elections in Europe and Britain’s exit from the European Union capped losses. However the fundamentals are still bullish for gold especially with the upcoming elections in France and elsewhere in Europe. So prices are not really expected to go much lower from here. The greenback was further supported by comments from New York Federal Reserve President William Dudley that reinforced the notion that core U.S. central bankers are confidently on the road to tighter monetary policy after having hiked interest rates twice in three months. Currently Gold is moving sideways The Gold is now trading in overbought level. The oscillator is showing buy signal and has moved down its previous low. The oscillator is showing buy signal for short term Gold is in hold long position. Support for the Gold is 28400.Resistance for the Gold is 29200.
Silver is holding up better than gold and after nine consecutive up-days it is looking to take a breather from around the trend-line running down off the July spike-high. On a pullback silver could touch off on a trend-line rising up from the month low but it’s not the most convincing trend-line yet given its lack of inflection points. From a trading perspective we lean towards the bearish side in the very near-term with the extended run losing steam at important trend resistance but price action as of yet hasn’t given a real strong indication that momentum lower will gain traction. Silver may only correct to a minor degree and then make another attempt at breaking the July trend-line. If this plays out then we will be able to gather more information upon a retest as to what the next move will most likely be.
The price action turn-around of Crude Oil of 55-week moving average should keep traders focused on Oil. We have recently looked at the 200-DMA because over the last year recent price tests of the 200-DMA have been met with large buying volume that subsequently lifted prices to multi-month highs over the following months. However stepping back its work looking at the 55-WMA because it reduces some of the noise of day-to-day price action and maintains technical significance. If the 55-WMA holds price and we continue to move higher which aligns with the developing sentiment picture we could see a move to $52/55. If the upside does not develop and we get a breakdown below the last weeks low at $47/bbl, then we will focus on the chart support at the $44/40.5 zone which is the 38.2-50% retracement of the February 2016 to January price range of $55.13-$26/bbl.
Overall trend of the Copper is bearish for medium-long term .Currently Copper is in strong downtrend and the trend is supported with good volume The open interest is not increasing with trend The oscillator is showing BUY signal For short term Copper is in hold long position. Support for the Copper is 370.Resistance for the Copper is 391.
Zinc dropped on profit booking after rise seen in dollar and ahead of fresh economic data from China. Korea Zinc Inc has a reed to take a 15 percent drop in annual processing fees for 2017 as smelters grapple with a dearth of mine supply. Zinc daily stocks at Shanghai exchange came up by 172 tones.
Overall trend of the Lead is bearish for medium-long term .Currently Lead 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 Lead if it close above157 or buy with strict stop at 143. The oscillator is showing buy signal for short term the current position is buying. Immediate support for Lead is 146.Resistance for the Lead is 157.
Amid muted demand at the domestic spot market nickel prices fell 0.74 percent to Rs 643.30 per kg in futures trade today as participants cut down their bets. At Multi Commodity Exchange nickel for delivery in the current month was trading lower by Rs 4.80, or 0.74 percent to Rs 643.30 per kg in a business turnover of 800 lots. Analysts said the fall is mostly in line with a weakening trend in the base metals at the domestic spot markets due to slack demand from consuming industries, particularly from alloy-makers.
Aluminum is in perfect uptrend Currently Aluminum is in strong uptrend with good momentum and the trend is supported with good volume the open interest is not increasing with trend. Cautious point is buying at higher levels seems decreasing. The oscillator is showing buy signal for short term the current position is buying. Support for the Aluminum is 121. Immediate resistance for Aluminum is 128.
GOLD 29200 28400
SILVER 42880 40590
CRUDE 3400 3095
COPPER 391 370
LEAD 157 146
NICKEL 675 625
ALUMINIUM 128 121
ZINC 188 177