Archive for October 2013
Copper declined from a one-month high as China’s money-market rates surged and after U.S. payrolls rose less than forecast, curbing the demand prospect for the metal in the top users. The contract for delivery in three months on the London Metal Exchange fell as much as 1.1 percent, the most since Oct. 9, to $7,249.75 a metric ton and traded at $7,261.75 by 3:13 p.m. in Tokyo. The price lost 8.4 percent this year. It touched $7,350 yesterday, the highest intra-day level since Sept. 20. Technical chart of Copper suggest that prices have reversed after taking support of 450 level. RSI is in a buy mode. We expect prices to go up to levels of 460.
Zinc Trend Today
MCX Zinc had fallen sharply in September. From the high of 136.90, it has reached the medium-term rising trendline. The base metal found support near the trendline, but couldn’t convert it into a significant bounce. Since the last few days, the price is consolidating near the trendline and has formed a bearish wedge pattern. The daily upper Bollinger Bands is acting as a key resistance. Thus the commodity is expected to tumble down from the current level. Unless the swing high of 120 is crossed on a closing basis, the commodity can test the recent low of 113.5.
International Commodity Updates
The U.S. economy has been hurt by a recent budget standoff in Washington and it is important that the nation does not go through another around of brinkmanship, Treasury Secretary Jack Lew said on. The Federal Reserve should be "extraordinarily careful" about hiking interest rates to head off potential risks to financial stability, a top U.S. central banker said on Friday, warning about consequences to the economy. China's cabinet called for greater effort in revamping the economy because a recovery is not yet solid, seeking quicker progress on restructuring industry and increasing consumption while guarding against risk and protecting people's livelihoods. LME Inventory for Nickel advanced by 720 tonnes on Monday. London copper futures edged up on Friday, supported by data showing China's economy grew as forecast in the third quarter, although concerns its upward momentum may be short-lived limited price gains.
Natural Gas Trend
Natural gas futures bounced back from a seven-day low to close modestly higher on Friday, as investors returned to the market to close out bets on lower prices after futures move into oversold territory. Meanwhile, market participants continued to focus on weather forecasts to gauge the strength of demand for the fuel. On the New York Mercantile Exchange, natural gas futures for delivery in November inched up 0.19% on Friday to settle the week at USD3.764 per million British thermal units.
Gold prices at COMEX rebounded Wednesday to recoup much of Tuesday’s big loss as the reality of the U.S. government shutdown sank in and the debt-ceiling battle loomed on the horizon. Gold also found support following disappointing data on U.S. private-sector employment. Data showed private-sector jobs rose by 166,000 in September, which was below forecasts, and August’s job gains were revised down.
Some physical buyers of precious metals see the recent drop in gold prices as a “huge opportunity, especially in view of the U.S. budget crisis and the impending U.S. debt limit crisis,” And among gold’s supportive factors was “overall safe-haven flows” into assets such as U.S. bonds and the Japanese yen.
Earlier, Gold at international bourses traded near two-month low on Wednesday as the first US government shutdown in 17 years caused investors to sell the precious metal, prompting already jittery traders to believe there could be more liquidation.
MCX Gold Tips
Technically the trend of MCX gold futures is consolidate to bullish and is expected to continue with the trend for the day. we suggest that MCX Gold has a consolidate trend with a strong support at 29750-29820 range and resistance at 30250-30300 range. Buy on dip has been suggested with a stop loss of below 29750.