Commodity/MCX Weekly News Letter

Gold:-

U.S. factory activity ticked up in May after slowing for two straight months and private employers stepped up hiring, suggesting the economy is regaining speed after struggling at the start of the year. The U.S. Federal Reserve sent a strong signal on Thursday that it would raise interest rates this month and soon begin shedding some of its $4.5 trillion in bond holdings, despite some weak recent U.S. inflation readings. The European Central Bank will sound a little more optimistic on the economy at its June 8 meeting and could raise its assessment of risks to balanced or begin discussing shift from its bias to ease policy a Reuter’s poll of economists showed.

Silver:-

Silver dropped as hawkish comments concerning U.S. interest rates from a top Fed official weighed on prices. Two of Fed’s 12 regional banks supported raising the discount rate ahead of the central bank’s May meeting, according to minutes of the discount rate discussions. Euro zone finance ministers failed to agree with the International Monetary Fund last week on Greek debt relief as well as failing to release new loans to Athens.

Crude:-

WTI oil prices declined by 1 percent on Tuesday to close at $49.7 per barrel on signs of resurgent crude output in Libya and concerns that extended production cuts by leading exporting countries may not be enough to drain a global glut that has depressed prices for almost three years. On the MCX, gold prices declined by 1.7 percent to close at Rs.3203 per barrel. We expect oil prices to trade lower today on profit booking at higher levels and high global inventories while increasing production in Libya and concerns over extended production cuts by the OPEC will exert downside pressure. On the MCX, oil prices are expected to trade lower today, international markets are trading lower by 0.6 percent at $49.35 per barrel.

Lead:-

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 above135.60 or buy with strict stop at 132. The oscillator is showing buy signal for short term Lead is in hold long position. Immediate support for Lead is 132.Resistance for the Lead is 138.

Nickel:-

The Nickel is in perfect uptrend .Currently Nickel is in strong uptrend 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 and closed above 1 month high with volume signals up breakout. Support for the Nickel is 712.Immediate resistance for Nickel is 748.

Aluminum:-

The Aluminum is bearish for medium-long term .Currently Aluminum is moving sideways the oscillator is on sell signal and Aluminum is coming down from overbought level .In last 1 month volatility is very less and fresh buy can be considered in the Aluminum if it close above123.90 or buy with strict stop at 121. The oscillator is on sell signal and Aluminum is coming down from overbought level for short term Aluminum is in hold long position. Support for the Aluminum is 121-.Resistance for the Aluminum is 127.

Commodity Trends:

R1 S1
GOLD 29310 28500
SILVER 41170 38700
CRUDE 3305 2930
COPPER 375 358
LEAD 138 132
NICKEL 748 712
ALUMINIUM 127 121
ZINC 173 162
Natural Gas 215 192