Researcher Views: Commodity News Letter For Week
Gold prices rose nearly one percent for the third session in a row moving farther away from a one-month trough hit earlier this week while the dollar gave up ground following earlier data from the world’s largest economy. Earlier US data showed unemployment claims rising as expected while the housing price index rose 0.7% or the same as before in April as markets await the CB leading index for May later today expected to slow down. Federal Open Market Committee member Jerome Powell is scheduled to appear in front of the Senate Banking Committee in Washington as investors look for any clues about the future of policy tightening this year. Last week the Federal Open Market Committee voted to increase interest rates by 25 basis points for the second time this year while downgrading their projections for unemployment and inflation and keeping their growth forecasts intact as the Fed announced its plan to normalize the balance sheet later this year and trim it down from its current $4.5 trillion levels.
Silver futures rose nearly one percent away from the lowest since May 12 as the dollar index edged lower following earlier data from the world’s largest economy. Silver dropped weighed down by a stronger dollar supported by data showing a strong U.S. jobs market. The U.S. Department of Labor said initial jobless claims in the week ending June 10 decreased by 8,000 to 237,000 from the previous week’s total of 245,000.The central bank maintained its outlook of one more rate hike for this year as it expects that a tightening labor market will lift inflation to the 2% target
Oil futures tilted higher in American trade moving farther away from ten-month lows as the dollar gave up ground following earlier data from the US the world’s largest energy consumer. Oil futures are recovering on profit-taking while still heading for the fifth weekly loss in a row the longest such streak since 2015, as markets price in above five-year averages global oil inventories at 292 million barrels and after US Libyan and OPEC production increased in May. Otherwise the Energy Information Administration released its report on US crude stocks showing a drawdown of 2.5 million barrels in the week ending June 16, adding to the 1.7M drop in the previous reading while analysts expected a 1.2% fall with total stocks now reaching 509.1 million barrels remaining within the upper range in average for this time of year. Gasoline stocks fell 0.6 million barrels while distillate stocks rose 1.1 million barrels both remaining within the upper range in average for this time of year.
LME Copper prices are currently trading lower by 0.1 percent at $5734/t. Prices are expected to trade sideways today as latest hawkish comments by Fed member Patrick Harker to keep a pause on rate hikes will provide some relief. Also, consistent decline in LME stocks will provide a cushion. We expect MCX copper prices to trade sideways today. the Copper is bearish for medium-long term .Currently Copper is moving sideways The oscillator is showing SELL signal .In last 1 month volatility is very less buy the Copper above 379 or buy with strict stop at 358. The oscillator is showing sell signal for short term Copper is in hold long position. Support for the Copper is 365.Resistance for the Copper is 380.
Zinc is bearish for medium-long term .Currently Zinc 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 Zinc is in hold long position and closed above 1 month high with volume signals up breakout. Support for the Zinc is 168.Resistance for the Zinc is 177.
The Lead is bearish for medium-long term .Currently Lead is in strong uptrend with good momentum but volume is unsatisfactory 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 Lead is 134-.Resistance for the Lead is 144.
The Aluminum is bearish for medium-long term .Currently Aluminum is moving sideways The Aluminum is now trading in oversold level. The Aluminum is now trading in oversold level. The oscillator is showing sell signal .In last 1 month volatility is very less buy the Aluminum above 124 or buys with strict stop at 120. The Aluminum is now trading in oversold level. The Aluminum is now trading in oversold level. The oscillator is showing sell signal for short term Aluminum is in hold short position. Immediate support for Aluminum is 120.Resistance for the Aluminum is 124.
GOLD 28830 28400
SILVER 38710 37750
CRUDE 2900 2730
COPPER 380 365
LEAD 144 168
ALUMINIUM 124 120
ZINC 177 168