Daily Commodity News Letter

Gold:-

We expect gold prices to trade lower continuing its weakness from the previous trading session as the possibility of rate hike in June by the US Federal Reserve and hopes of Macron winning the presidential election in France will lead to dumping of the yellow metal. All the risk and the uncertainties in the markets have faded while stronger dollar index and the possibility of rate hike in June by the US Federal Reserve are push factors for gold prices to head lower in the near term. On the MCX, gold prices are expected to trade lower today, although international markets are trading higher by 0.14 percent at $1228 per ounce.  the Gold is bearish for medium-long term .Currently Gold is in strong downtrend with good momentum and the trend is supported with good volume . The oscillator is showing sell signal for short term Gold is in sell position and closed below 1 month low with volume signals down breakout. Immediate support for Gold is 27890 .Resistance for the Gold is 29080.

Silver:-

Silver bounced back from a three-week low, as uncertainty regarding the tone of the Federal Reserve statement, due to be released on Wednesday, alongside an interest rate decision, capped losses. Recent economic data have not been supportive of faster rate hikes as manufacturing, and construction spending activity fell in April while investors braced for a jobs report on Friday. In today's meet Fed is widely expected to hold rates steady, but investors will focus on the language of the statement for guidance on the number of rate increases this year and next. Interest rate futures are still pricing a roughly 70 percent chance the Fed will raise rates in June. Now Worries about tensions over the Korean peninsula eased after U.S. President Donald Trump on Monday opened the door to meeting North Korea's Kim Jong Un, saying he would be honored to meet the young leader under the right circumstances, even as Pyongyang suggested it would continue its nuclear weapons tests. Technically market is getting support at 37900 and below same could see a test of 37100 levels, and resistance is now likely to be seen at 40040, a move above could see prices testing 40400.

Crude:-

U.S. crude stocks fell last week, and both gasoline and distillate inventories also dropped, data from industry group the American Petroleum Institute (API) showed. Crude inventories fell by 4.2 million barrels in the week ended April 28 to 528.3 million barrels, compared with analyst expectations for a decrease of 2.3 million barrels but more oil from Angola and higher UAE output than originally thought meant OPEC compliance with its production-cutting deal slipped to 90 percent from a revised 92 percent in March, according to surveys. Crude oil discharged on ships worldwide in April was near a record high of 45 million barrels per day, according to Thomson Reuters Eikon data. This indicates supplies remain high, but it also implies strong demand, especially from Asia. Technically market is under fresh selling as market has witnessed gain in open interest by 22.48% to settled at 21119 while prices down -55 rupees, now Crude oil is getting support at 2870 and below same could see a test of 2760 level, And resistance is now likely to be seen at 3180, a move above could see prices testing 3250.

Copper:

Overall trend of the Copper is bearish for medium-long term .Currently Copper is in strong uptrend and the trend is supported with good volume the open interest is not increasing with trend. Cautious point is buying at higher levels seems decreasing. The oscillator is showing buy signal for short term Copper is in hold long position. Immediate support for Copper is 357.50.Resistance for the Copper is 374.

Zinc :

While China's factory sector lost momentum in April, with growth slowing to its weakest pace in seven months as domestic and export demand faltered and commodity prices fell a private survey showed on Tuesday. Now Market participants were also eyeing the Federal Reserve’s two-day policy meeting this week. Recent economic data have not been supportive of faster rate hikes as manufacturing, and construction spending activity fell in April while investors braced for a jobs report on Friday. Technically market is under fresh selling as market has witnessed gain in open interest by 0.64% to settled at 3792 while prices down -0.75 rupees, now Zinc is getting support at 163 and below same could see a test of 161 level, And resistance is now likely to be seen at 171.80 a move above could see prices testing 172.9.

Lead:-

Overall trend of the Lead is bearish for medium-long term .Currently Lead is in strong uptrend and the trend is supported with good volume the open interest is not increasing with trend. Cautious point is buying at higher levels seems decreasing. The oscillator is showing buy signal for short term Lead is in hold long position. Immediate support for Lead is 139.Resistance for the Lead is 148.

Nickel:-

 The amount of nickel sitting in the LME warehouse network currently stands at 379,182 tons. Last year's downtrend, which saw inventory fall by 69,000 tons, has dissipated. Now Market participants were also eyeing the Federal Reserve’s two-day policy meeting this week. While the central bank is widely expected to hold interest rates, investors were eyeing hints on the pace of future rate hikes. Recent economic data have not been supportive of faster rate hikes as manufacturing, and construction spending activity fell in April while investors braced for a jobs report on Friday. That said, the majority of traders, expected the Federal Reserve to maintain its previous guideline of three total rate hikes in 2017, with the second rate hike widely expected in June. Technically market is getting support at 578.60 and below same could see a test of 562 levels, and resistance is now likely to be seen at 617.60, a move above could see prices testing 629.

Aluminum:-

Overall trend of the Aluminum is bearish for medium-long term .Currently Aluminum is moving sideways The oscillator is showing sell signal .In last 1 month volatility is very less Buy the Aluminum above 127 or buy with strict stop at 122. The oscillator is showing sell signal for short term Aluminum is in hold short position. Immediate support for Aluminum is 121.80.Resistance for the Aluminum is 124.10.

Commodity  Trends:

	R1	S1
GOLD	29080	27890
SILVER	41090	37900
CRUDE	3180	2870
COPPER	374.30	357.50
LEAD	148	139
NICKEL	617.60	578.60
ALUMINIUM	124.10	121.80
ZINC	172.90	163