Weekly Commodity News Letter

Gold:-

Gold managed to stay supported around its two month highs today amid a jaded undertone in global equities. Strong Indian demand hopes and sustained safe haven buying also helped the yellow metal. The US dollar slipped lower against other major currencies on Friday, as ongoing US political tensions and doubts over an additional rate hike by the Federal Reserve this year continued to weigh. The US dollar index is quoting around 93.50 levels, down 0.15% on the day. COMEX Gold is quoting at $1294 per ounce, up 0.13% on the day. MCX Gold futures are trading at Rs 29371 per 10 grams, up 0.73% on the day. Gold managed to see good buying yesterday as a terror attack in Barcelona dominated attention. Weakness in US equities also supported the precious metal. Political worries in US hit the sentiments and a hefty the sell-off on the day took the S&P 500 dropped to its lowest closing level in over a month.

 

Silver:-

Silver price moves at the bullish trend line that appears on chart, located at 16.95 now, and the price gets continuous positive support by the EMA50, while stochastic provides positive overlapping signal on the four hours' time frame.Therefore, we believe that the chances are valid to trade positively in the upcoming sessions, and the price needs to breach 17.43 level to confirm rallying towards 18.30 on the near term basis, noting that it is important to hold above 16.56 to guarantee the continuation of the expected bullish trend. Expected trading range for the week is between 16.85 support and 17.43 resistance. For silver mcx the range is between 39580- 38015

Crude:-

Oil prices recovered from lows, but stayed near their lowest level in three weeks as concern over rising production in the U.S. and elsewhere dampened sentiment. Data from the U.S. Energy Information Administration showed that total domestic crude production edged up by 79,000 barrels a day to 9.5 million barrels a day last week, its highest level since July 2015. Crude oil inventories fell by 8.9 million barrels, according to the EIA figures, the seventh weekly decline in a row. Oil prices have been under pressure in recent weeks as concern over rising U.S. shale output canceled out production cuts by OPEC and non-OPEC members. OPEC and 10 producers outside the cartel, including Russia, agreed since the start of the year to slash 1.8 million barrels per day in supply until March 2018 in order to reduce a global supply glut and rebalance the market. However, so far, the deal has had little impact on global inventory levels due to rising supply from producers not participating in the accord, such as Libya and Nigeria, as well as a relentless increase in U.S. shale output.

Copper:

Copper was trying to break the shackles in the evening trades on Multi Commodity Exchange. Indian copper was trading at INR 417 per kg, up 0.31%. Mining major BHP announced approval of capital expenditure of US$2.46 billion for the Spence Growth Option (SGO) at the Spence open-cut copper mine in northern Chile, which will extend the mine life by more than 50 years.
BHP Chief Executive Officer Andrew Mackenzie said the SGO project supports BHPs strategy to deliver near-term, valuable copper production. In the first 10 years of operation, incremental production from SGO will be approximately 185 ktpa of payable copper in concentrate and 4 ktpa of payable molybdenum, with first production expected in the 2021 financial year. The current copper cathode stream will continue until the 2025 financial year.

Base Metals :

The Aluminium, copper and other base metals edged down from multi-year peaks as some investors locked in profits from a steep rally amid doubts about future demand in top metals consumer China. Speculators have largely fuelled a rally on the London Metal Exchange that has seen the index of six LME industrial metals climb 16 percent from early June to Wednesday's close. Also weighing on metals markets as well as European shares were minutes from the U.S. Federal Reserve, released on Wednesday evening, in which policymakers voiced concern over weak U.S. inflation, clouding the outlook for the world's largest economy. Prices were supported as LME inventories continued to fall. On-warrant stocks - those not earmarked for delivery and therefore available to investors - have slid 46 percent over the past month. Despite the fall in inventories, consultancy Wood Mackenzie expects the global copper market to be largely balanced between supply and demand this year. Chinese zinc output fell 6.3 percent year-on-year in July to 476,000 tonnes. LME zinc inventories have tumbled 42 percent this year to the lowest levels since December 2018

Commodity  Trends:

	R1	S1
GOLD	29444	28908
SILVER	39580	38015
CRUDE	3155	2990
COPPER	422	408
LEAD	153	147
NICKEL	704	670
ALUMINIUM	133.70	124
ZINC	189	176