Fundamental & Technical Outlook on Commodities - December 7, 1013 CapitalVia Global Research Ltd

Precious metal:

Gold prices fell around 2% initially on Thursday after strong economic data from US increased fears of stimulus withdrawal by Fed. US GDP increased at a seasonally adjusted annual rate of 3.6% in the last three months while unemployment claims also declined. However, a weaker dollar after ECB refrained from easing monetary policy further and a rise in US business inventories pared initial losses in Gold. We expect Gold prices to move further down as expectations of positive non-farm payroll numbers from US is likely to pressurize prices. A stronger rupee can push Gold prices in India further down.

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 43850 then it could test the levels of 42700/ 41000.

Energy:

US Crude oil prices rose on Thursday on optimism over US economic growth after GDP expanded more than forecast. However, Brent prices fell, narrowing the spread between the two to $13 per barrel. A storm warning towards Europe has caused the North Sea oil producers to cut production and staff which could support oil prices. Crude oil prices are expected to move up as lower inventories and improving demand outlook from US can support prices.

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:

Tracking the fall in copper futures due to weak global cues as investors weighed signs of improvement in the US economy against concern the Federal Reserve may start trimming its stimulus sooner than estimated.

Trend of MCX Copper February future is in consolidation and also sustaining in a range. For the coming week, it could face major resistance of 452/461 whereas 428/420 could be a major support in MCX Copper. For the next week trader may go for sell on higher levels, if MCX Copper future sustain below 440 levels then it could test the level of 435/428.

Source : Equity Bulls

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