Precious metal:
Gold surged to near three-week high on Friday on expectations of robust China buying ahead of Lunar New Year and as weak local currency restrict imports. Gold also remained bullish due to the buying from major hedge funds over year beginning to keep in the portfolio. Gold prices are expected to remain higher for the week as year beginning dollar buying and subdued equity markets can push some buying for Gold.
Over all, MCX Gold February future is in consolidation and sustaining around higher levels. For the coming week 28800/28460 will act as a major support whereas 29900/30500will act as a major resistance level in MCX Gold February future. For the next week in MCX Gold, trader can use buy on lower level strategy, if MCX Gold February future sustain above the levels of 29371 then it could test the levels 29550 /29900.
Technically, MCX Silver March futures is sideways and sustaining around higher levels. For the coming week 49200/51000 will act as major resistance levels where as 44500/42400 will act as major support in MCX Silver March futures. For the next week in MCX Silver futures, traders can use buy on lower level strategy, if MCX Silver March futures sustains above 45845 then it could test the levels of 47280/ 49200.
Energy:
US crude oil moved lower on Friday after news came in that Libya hopes to resume production at one of its largest oilfields. A decrease in U.S. jobless claims and an increase in manufacturing activity strengthened the U.S. dollar, also put pressure on oil prices. Inventory is also expected to remain down by 2.3mln barrels. Crude oil prices are expected to remain down as optimism in Libya over starting its largest oil field can help pushing the crude oil prices lower.
For the coming week 5650/5500 will act as major supports levels whereas 6150/5900 will act as major resistance in MCX Crude oil January futures. For the next week, trader can go for sell on higher level strategy, if MCX Crude January future sustain below 5900 levels then it could test the levels 5810/5650.
Base Metal:
Copper prices remained in a range for the week as mixed manufacturing data coming from US, Italy and Spain kept the prices in a tight range. Stronger dollar internationally also pressured the copper prices. s. The metal used in power and construction fell 7.2 percent in 2013 but gained more than 4 percent in December. Today Japanese markets remained shut. We expect Copper prices to move in a range along with other base metals as mixed data coming from US and other economies can keep the prices in tight range.
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 497/513 whereas 462/451could 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 473 levels then it could test the level of 482.30/496.90.