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Commodity Overview



Market View: Risk sentiment in the global markets looks to be improving after EM Central banks like Turkey took steps to control the slide in their currencies following the RBI which surprisingly hiked rates.

US economic was fairly mixed with durable goods orders posting a sharp decline but consumer confidence improving more than expected Meanwhile, the dollar was slightly higher against the euro and yen but the INR appreciated sharply following RBI rate.



Gold prices continue to decline as a mixed set of economic data and expectorations of further tapering weigh on prices. The FOMC decision is expected later today and data yesterday showed that while home prices and US consumer confidence rose, durable goods orders fell the most in five months Meanwhile, some central banks continue to buy gold as Kazakhstan added 2.39tons to its reserves in December, Ukraine added 0.6 tons and Belarus 0.9 tons. MCX Gold yesterday failed to breach29750 and closed near 29520 levels. Strong support on the downside is atRs.29460 and breach below the same could result into short term weakness for the target of 29250/29100MCX Silver failed to breach mentioned resistance of Rs.45300 and fell sharply. Price is unable to breach crucial range ofRs.43700-45900 and either side breach of this range could give us further direction




Industrial metals were trading slightly higher today morning, after closing in the red yesterday as a surprise rate hike by Turkey soothed jitters over emerging market growth ahead of a key Fed decision later today evening Data from the US showed that rising household spending and exports likely pushed the economy ahead in Q4, building a foundation for stronger growth this year. All eyes are set on the FOMC meeting announcement tonight where it is widely expected to reduce its monthly bond purchases by another 10 billion. MCX Copper continues to trade in a broad range of Rs.451.50-460 and either side breach could decide the positional trend. As long as below immediate resistance at Rs.457.50, bias is bearish and selling on rise is advisable Nickel is still unable to sustain above previous high of Rs.915 level and looks to trade sideways to weak as long as it stays below the same



Crude oil prices spiked yesterday as a jump in consumer confidence raised demand prospects for crude oil in the U.S.API data earlier today suggested that crude inventories jumped by 2.3 million barrels even as distillate inventories continue to drop. Distillate inventories fell by 1.8 million barrels, slightly lower than expected EIA report tomorrow is expected to show that U.S. crude stockpiles rose 2.25 million barrels and the focus today will be the FOMC Crude oil is in a pullback mode of its entire fall from Rs.6314 to Rs.5640 and is trading nearRs.6135 at present. Strong intraday support is at 6060 level while resistance is at 6170/6210As expected Natural Gas prices fell sharply after making a short term top near Rs.340 level. Strong support on the downside is atRs.302/305 level while strong resistance is atRs.312.5/315.5