Daily Commodity/MCX News Letter

Gold:-

Gold futures rose nearly one percent in American trade even as the dollar index gained ground, following earlier data from the world’s largest economy, and as the Group of 7 convenes in Italy. Earlier U.S. data showed the GDP growing 1.2% in the first quarter according to the second reading up from 0.7% in the first reading and past expectations of 0.9%, while GDP prices rose 2.2%, down from 2.3% in the previous reading. Durable goods orders fell 0.7% in April compared to a 0.9% rise in March and besting forecasts of a 1.4% drop. Core orders fell 0.4%, compared to no-change in March while analysts expected a 0.4% rise reflecting the possibility of continued slowdown in US growth in the second quarter which could weigh on the Federal Reserve’s policy decisions in June. The Gold is bearish for medium-long term .Currently Gold 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 Gold is now trading in overbought level. The oscillator is showing buy signal for short term the current position is buying. Support for the Gold is 28040.Resistance for the Gold is 29100.

Silver:-

Silver prices kept rising on Friday to their highest since April 28, shrugging off the dollar’s rise, and heading for the third weekly profit in a row, following earlier data from the world’s largest Durable goods orders fell 0.7% in April, compared to a 0.9% rise in March, and besting forecasts of a 1.4% drop. Core orders fell 0.4%, compared to no-change in March, while analysts expected a 0.4% rise, reflecting the possibility of continued slowdown in US growth in the second quarter, which could weigh on the Federal Reserve’s policy decisions in June.

Crude:-

Crude prices tilted higher in American trade even as the dollar index gained ground after earlier data from the US the world’s largest energy consumer. Today’s gains comes on short-covering after plunging nearly five percent yesterday after OPEC agreed with independent producers including Russia to extend output cuts by 1.8 million bpd until March. OPEC’s energy ministers said that oversupply in the last three years resulting from overproduction won’t diminish to five-year averages until the end of 2017 at the earliest while Saudi energy minister Khalid Al Faleh said that cuts will curb global stocks to five-year averages by the first quarter of 2018.

Copper:

Copper futures edged up in American trade as the dollar index gave up ground following earlier data from the world’s largest economy and after Moody’s agency downgraded its credit ratings for China the source of 40% of global copper demand for the first time since 1989. The Copper is bearish for medium-long term .Currently Copper 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 Copper is 359.Resistance for the Copper is 374.

Zinc :

Zinc settled flat as LME Zinc prices closed in a small backwardation for the first time since Feb. 20.Plans to boost infrastructure spending in China and the United States are bolstering market sentiment. Zinc daily stocks at Shanghai exchange came down by 1904 tones. Zinc dropped -3.03% as pressure seen after the workers at a zinc smelter in Peru called off a strike. The euro zone economy started the year with robust growth that outstripped that of the United States and set the stage for a strong 2017 South Korea re-issued a tender to buy 1,000 tons of zinc for July arrival.

Lead:-

The China Banking Regulatory Commission unveiled plans to publish a flurry of regulations later this year to control financial risks. The April data from the credit market was better than expected. China’s growth is set for its weakest patch since the global financial crisis as authorities pull back on stimulus. Air pollution in a key Chinese region surrounding Beijing worsened in the first four months of this year, despite tough new campaigns to enforce green regulations. The Lead is bearish for medium-long term .Currently Lead is in strong downtrend but volume is unsatisfactory the open interest is not increasing with trend. The oscillator is showing sell signal for short term Lead is in hold short position. Immediate support for Lead is 131.Resistance for the Lead is 138.

Nickel:-

The Nickel is bearish for medium-long term .Currently Nickel is in strong uptrend with good momentum 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 the current position is buying. Immediate support for Nickel is 579.Resistance for the Nickel is 607.

Aluminum:-

The Aluminum is in long- medium- short-medium- short- term bull phase .Currently Aluminum 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. The oscillator is showing buy signal for short term Aluminum is in hold long position and closed above 1 week high with volume signals up breakout. Support for the Aluminum is 120.80. Immediate resistance for Aluminum is 126.50.

Commodity Trends:

R1 S1
GOLD 29100 28040
SILVER 40455 38680
CRUDE 3370 3080
COPPER 374 359
LEAD 138 131
NICKEL 607 579
ALUMINIUM 127 120
ZINC 173 163