Commodity Weekly Report for 06/May/2013 – 11/May/2013
Gold demand drops as prices rise on weak rupee.
Demand for gold in India, the world’s biggest
consumer of the precious metal, dropped on Friday as local prices rose
tracking overseas markets and on a weak rupee. ”Demand is very
price-sensitive. The general perception among jewellers is prices will
come down. That’s why whenever prices go above Rs 27,000, demand is
slowing,”. ”Jewellers bought a lot of gold last month when prices fell
below Rs 26,000. Now, they are interested in only
bargain-buying,”. Indians celebrate Akshaya Tritiya in the third week of
May, a time considered auspicious to buy gold, while the current
wedding season continues until July. The rupee, which plays an important
role in determining the landed cost of dollar quoted yellow metal, fell
on Friday. In the overseas market, gold rose as a cut in interest rates
by the European Central Bank and US Federal Reserve’s decision to stick
to its stimulus programme burnished bullion’s appeal as a hedge against
inflation.
MCX Natural Gas negative: Support at 213 and 210 levels.
On the MCX, natural gas for May delivery looks bearish and traders
may use sell at higher levels strategy. The commodity may find support
at 213 and 210 levels, while on the upper side, prices have resistance
of 219 and 223 levels.Production of natural gas increased in most of the
regions in US that the EIA broke out from the total Lower-48. Growth in
February came from New Mexico (220 MMcf/d m/m), Texas (300 MMcf/d m/m),
and especially other states (includes Marcellus) (520 MMcf/d m/m).Gross
withdrawals of gas in the Lower-48 grew by 920 MMcf/d m/m in February,
reversing the large declines of 1 Bcf/d and 470 MMcf/d m/m in December
2012 and January 2013, respectively,caused by well freeze-offs. Pipeline
flows had shown a recovery of production, but one of a smaller, 300
MMcf/d magnitude.February withdrawals were 1.27 Bcf/d higher than last
year, but still about 560 MMcf/d below the peak levels reached in
November 2012.
LME posts new monthly trading record; Aluminium star gainer.
Record volumes were transacted on the London Metal Exchange (LME) in
April 2013, with 14,517,213 lots traded. The previous record was set in
November 2012, with 14,513,976 lots traded.Aluminium saw a 14% increase
in average daily volume in April 2013 compared with the corresponding
month last year.Copper was up 3%, and nickel and tin both saw an
increase of 15% in average daily volume.Cobalt experienced the largest
growth, with April average daily volume up 120% from the corresponding
month in 2012.To date this year the LME is averaging 673,083 lotsper
day, up 6% from the average daily volume for the whole of 2012
MCX GOLD Technical Trend
MCX GOLD
showed sideways movement and unable to sustain on lower levels. Now,
27450 is seen as major resistance where the gap filling is expected till
27680. Any reversals from higher side will find support around 26350
below which free fall is expected towards the next support of 25500.
STRATEGY
Better strategy in MCX GOLD is to buy above 27500 for the targets of 28100 with stop loss of 26800.
MCX SILVER Technical Trend
MCX SILVER
last week showed sideways movements, gave closing above trend line and
traded above 50% retracement on weekly chart. Now, if bull continues
then next resistance level is seen around 47500. On other hand weakness
will be seen below 43500 and if it sustains below this level then strong
support is seen near 42300.
STRATEGY
Better strategy in MCX SILVER at this point of time is to buy above 46000 for the target of 47500, with stop loss of 44000.
MCX CRUDEOIL Technical Trend
Crude oil last week showed a choppy movement and closed above 5100
i.e. 50% retracement on daily chart. Now next resistance level is seen
around 5200 i.e. 68.8% retracement only above these bull rally
continuous. Support zone for the week is seen near 38.2% retracement of
5000-4950.
STRATEGY
Better strategy in
MCX CRUDEOIL is to buy above 5200 for the target of 5300 with stop loss of 5185.
MCX COPPER Technical Trend
MCX Copper was unable to sustain on lower levels and positive
sentiments were seen last week. But, still the trend doesnt seems to be
strong. Strength is confirmed if it maintains above 403 in the coming
week. If it sustains below 23.2% retracement of 387 then next major
support is seen around 365.
STRATEGY
Better strategy in
MCX COPPER will be buy above 403, with stop loss of 394 for the target of 410.
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