by- Mr. Vivek Gupta – Director Research, CapitalVia Global Research Limited

Gold futures gained ground on Friday, pulling away from two-month lows as markets were jittery ahead of a highly anticipated speech by Federal Reserve Chair Janet Yellen in Jackson Hole later in the day.

Gold prices dropped to two-month lows on Thursday, after a string of upbeat U.S. data fuelled optimism over the strength of the country’s economic recovery.  Investors now looked ahead to the second day of the Fed’s annual meeting of top central bankers and economists in Jackson Hole, Wyoming. We expect Gold prices to remain in range for the week as the Fed Chair’s comments in the Jackson Hole meeting would create some volatility in the market.

Over all, MCX Gold October future is in bearish trend and sustaining around lower levels. So for the coming week, we are expecting major down fall form higher levels. For the coming week 27000/26500 will act as a major support whereas 28000/28600 will act as a major resistance level in MCX Gold October future. For the next week in MCX Gold, trader can use sell on higher level strategy, if MCX Gold October future sustains below the levels of 27600 then it could test the levels 27400/27100. Technically, MCX Silver September futures is in bearish trend and sustaining around lower level from last couple of the week. For the coming week 43000/44500 will act as a major resistance levels where as 39000/37700 will act as major support in MCX Silver September futures. For the next week in MCX Silver futures, traders can use sell on higher level strategy, if MCX Silver September futures sustains below 41500 then it could test the levels of 40500/39000.

Energy:-

U.S. and Brent crude futures traded in range on Friday, lifted by supportive economic data from the United States after a plentiful supply picture and Chinese economic data had earlier pressured prices. Sales of existing U.S. homes rose to a 10-month high in July and the number of initial jobless claims fell last week, signaling third-quarter strength in the economy. We expect crude oil prices to trade on positive note on the back of stronger than expected US economic data and hopes of improving demand for oil. For the coming week 5600/5350 will act as major supports levels whereas 6080/6200 will act as major resistance in MCX Crude oil September futures. For the next week, trader can use buy on lower level strategy, if MCX Crude September future sustain above 5750 levels then it could test the levels 5850/6000.

Base Metal:-

Copper was unexpectedly of the strong performers yesterday rising by over 2% 7010/MT mark.  There have been no major changes over Inventory front lately while Copper backwardation which rose to $38 in earlier. half of the week once again fell to $27 per MT mark per MT. Today’s Chinese weak PMI number might continue to have a cap on the metal gaining in a big way and thus we hold a ranged view in the commodity.

Trend of MCX Copper August future is in consolidation and also sustaining in range. For the coming week, it could face major resistance of 428/440 whereas 390/378 could be a major support in MCX Copper. For the next week trader may follow sell on higher levels strategy, if MCX Copper August future sustain below 420 levels then it could test the level of 411/402.