Commodity Market Forecast - Mr.Vivek Gupta, Director Research, CapitalVia Global Research Limited
Gold as a commodity continued to follow the similar events/data points which have been weighing the metal for over last couple of month. On one side equities decelerated moderately, the metal remained steady to weaker in the earlier half before plunging down to multi month lows of Thursday and Friday. Gold Comex Dec shut shop by 0.7% down to $1227 per ounce while also touched a low near $1215 during the day. Subdued US housing data may have prompted buying interest from lower levels though trend still stays down. We saw good slide in Bullion yesterday and likely that weakness would continue today following better equity movement in Asian market. There are no major changes seen over physical demand side or either the ETF side though it would not be surprising for us if we see some short-covering post the commodity slipped down to fresh 8 month lows in the week. We expect gold prices to trade on the negative note as the plans to raise U.S. interest rates sooner than expected and expectations for a stronger U.S. currency in the longer run likely to keep Bullion market under pressure.
Over all, MCX Gold October future is in bearish trend and sustaining around lower levels. For the coming week 26200/25800 will act as a major support whereas 27200/27500 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 26400 then it could test the levels 26200/25800.
Technically, MCX Silver December futures is in bearish trend and sustaining around lower level from last couple of the week. For the coming week 41500/42900 will act as a major resistance levels where as 38200/37000 will act as major support in MCX Silver December futures. For the next week in MCX Silver futures, traders can use sell on higher level strategy, if MCX Silver December futures sustains below 40400 then it could test the levels of 39400/38200.