By Mr. Vivek Gupta, Director Research, CapitalVia Global Research Limited

Precious metal:-

Gold prices fell on Friday as strong US retail sales number strengthened the dollar amid fears of Fed tapering the bond buying program at the December 17-18 policy meet. The House has approved the two-year budget deal on spending cuts which has diminished the possibility of a government shut down in January. The Senate is likely to vote on the plan next week. Weak physical demand from India and persistent outflows from Gold ETF’s also pressurized prices. Gold prices are expected to move down as optimism over US economic recovery and improving fiscal situation has raised fears of Fed withdrawing the bond buying program in December and hurt gold prices. However, a weaker rupee could limit downside in Indian Gold prices.

Over all, MCX Gold February future is in consolidation and sustaining around lower levels. For the coming week 28000/27700 will act as a major support whereas 29500/29900will 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 28700 then it could test the levels 28500 /28140.

Technically, MCX Silver March futures is sideways and sustaining around lower levels. For the coming week 45000/46800 will act as major resistance levels where as 41600/40000 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 43700 then it could test the levels of 42450/ 41000.

Energy:-

Crude oil prices fell on Friday as market were eyeing the fed’s upcoming policy meeting amid growing expectation for the bank to soon begin tapering its stimulus program.  The US Senate Banking Committee rejected tightening measures against Iran now which would hold off on new sanctions over Iran’s nuclear program. Crude oil prices are expected to remain in range as improved supplies from OPEC region and lower inventories would keep prices in check.

For the coming week 5900/5760 will act as major supports levels whereas 6350/6470 will act as major resistance in MCX Crude oil December futures. For the next week, trader can go for buy on lower level strategy, if MCX Crude December future sustain above 6110 levels then it could test the levels 6200/6348.

Base Metal:-

Copper slipped on Friday as the dollar rose across the board and caution prevailed ahead of a U.S. Federal Reserve meeting next week. However, the downside was limited as fears of Indonesian ban on the export of unprocessed metal would hurt output at mines. Base metals are expected to move up as shortage of copper scrap supply and tightness in physical markets would support prices.

Trend of MCX Copper February future is in consolidation and also sustaining around higher levels. For the coming week, it could face major resistance of 482.30/496 whereas 456.50/447 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 465.50 levels then it could test the level of 472/482.30.