Mr. Vivek Gupta – Director Research Fundamental & Technical Outlook on Commodities

Precious metal:-

Gold prices rose on Friday after a negative Non-Fram payroll data from US. A weak report could boost gold’s appeal as a safe-haven. COMEX Gold are expected to move in a range for the week as negative US data and weaker dollar can push the prices higher. In the domestic market, we can see limited upside in Gold prices as stronger rupee can keep the price in a range.
Over all, MCX Gold June future is in consolidation and sustaining in a range. For the coming week 28000/27770 will act as a major support whereas 28720/29100 will act as a major resistance level in MCX Gold June future. For the next week in MCX Gold, trader can use buy on lower level strategy, if MCX Gold June future sustains above the levels of 28360 then it could test the levels 28500/28720.

Technically, MCX Silver May futures is in consolidation and sustaining around lower levels. For the coming week 45800/47900 will act as major resistance levels where as 42400/40600 will act as major support in MCX Silver May futures. For the next week in MCX Silver futures, traders can use buy on lower level strategy, if MCX Silver May futures sustains above 43500 then it could test the levels of 44500/ 45720.

Energy:-

Crude oil prices moved higher, especially Brent oil moved higher more than 1.5% as tensions between Russia and Ukraine seen rising. Russia raised the gas price for Ukraine on Thursday for the second time this week, almost doubling it in three days and piling pressure on a neighbor on the brink of bankruptcy in the crisis over Crimea. We expect Crude Oil prices to move higher for the  week over escalating tensions in Ukraine and Russia.

For the coming week 5990/5700 will act as major supports levels whereas 6330/6500 will act as major resistance in MCX Crude oil April futures. For the next week, trader can use buy on lower level strategy, if MCX Crude April future sustain above 6155 levels then it could test the levels 6225/6330.

Base Metal:-

Copper and other metals were pressured after China’s government announced a modest package of stimulus measures to shore up its flagging economy, but did not include new demand for copper. The news was disappointing because the plan did not include new orders, but rather brought forward planned spending. LME aluminium inventories hover at near-record levels of over 5 million tonnes and an equal or greater amount sits in off-exchange warehouses. We expect copper prices to move in a range for the week as weaker dollar and US Employment data can keep the prices in range.

Trend of MCX Copper April future is in consolidation and also sustaining around higher levels. For the coming week, it could face major resistance of 428.85/440.70 whereas 396/387 could be a major support in MCX Copper. For the next week trader may follow buy on lower levels strategy, if MCX Copper future sustain above 409 levels then it could test the level of 414/425.