By Mr. Vivek Gupta- Director Research Commodity market outlook

Precious metal:-

Gold prices rose slightly on Friday after weekly jobless claims data revealed the U.S. labour market still faces potholes along its road to recovery and will enjoy support from Federal Reserve stimulus programs and low interest rates for the foreseeable future.  Gold’s move in the previous session was initially prompted by falling equities and news from major buyer India that the leader of the country’s ruling party has asked the government to review tough import restrictions on Gold.  Gold prices are expected to move in a range as strong dollar and positive US data can keep the prices in range.

Over all, MCX Gold February future is in consolidation and sustaining in a    range. For the coming week 28750/28200 will act as a major support whereas 29600/30000will act as a major resistance level in MCX Gold February future. For the next week in MCX Gold, trader can use sell on higher level strategy, if MCX Gold February future sustain below the levels of 29250 then it could test the levels 29050 /28750.

Technically, MCX Silver March futures is consolidate and sustaining in range. For the coming week 45740/47000 will act as major resistance levels where as 42000/39931 will act as major support in MCX Silver March futures. For the next week in MCX Silver futures, traders can use sell on higher level strategy, if MCX Silver March futures sustains below 44600 then it could test the levels of 43200/ 42000.

Energy:-

Crude oil prices were trading near three week highs on Friday, as snow storms in the U.S. boosted demand for heating oil and as upbeat U.S. data added to signs that the country’s economic growth is accelerating. Crude oil prices are expected to move higher for the week as strong demand and positive inventory can keep prices on higher side.  For the coming week 5900/5600 will act as major supports levels whereas 6400/6600  will act as major resistance in MCX Crude oil January futures. For the next week, trader can go for buy on lower level strategy, if MCX Crude January future sustain above 6170 levels then it could test the levels 6260/6380.

Base Metal:-

Copper prices plunged to near six-weeks low after lower than expected from China triggering demand concerns from the world’s biggest base metals consumers.  “Rupee depreciation is supporting base metals prices on domestic front”.  However, sharp upside in the industrial metal prices may be capped on concerns of weak demand from China following poor manufacturing data and on speculation of subdued spot demand as world’s second biggest economy will go on a week long holiday for Lunar New Year from Jan 31.

Trend of MCX Copper February future is in consolidation and also sustaining around lower levels. For the coming week, it could face major resistance of 463/480 whereas 430/418 could be a major support in MCX Copper. For the next week trader may follow sell on higher levels strategy, if MCX Copper future sustain below 450 levels then it could test the level of 443/430.