Weekly Commodity News Letter

Gold:-

Gold futures tilted lower in American trade even as the dollar index bounced off the highest since July 26 for the fourth session in a row following an array of data from the US and as markets look forward to the Federal Open Market Committee's meeting minutes. Now markets look forward to the FOMC's minutes for the September meeting at which policymakers voted to hold interest rates unchanged at between one percent and 1.2% for the second session while paving the way for normalizing the balance sheet by October. Investors also await European Central Bank president Mario Draghi's speech tomorrow and Federal Reserve Chair Janet Yellen's speech on Sunday on economy and monetary policy in Washington DC.The Gold is in perfect uptrend Currently Gold is moving sideways The Gold is now trading in overbought level. The oscillator is showing buy signal .In last 1 month volatility is very less buy the Gold above 30250 or buys with strict stop at 29143. The Gold is now trading in overbought level. The oscillator is showing buy signal for short term Gold is in hold short position. Support for the Gold is 29270. Immediate resistance for Gold is 30250.

 

Silver:-

Silver futures rose nearly one percent in American trade for the sixth straight session away from the lowest since August 8, shrugging off the dollar's modest gains today following a basket of data from the US the world's largest economy. Earlier US data showed consumer prices accelerated to an eight-month high as retail sales rose as well in September while the UoM Consumer Sentiment survey bested expectations in October. Federal Reserve Bank of Chicago President Charles Evans spoke about the economy and monetary policy at the Wisconsin Summit on Financial Literacy in Green Bay where he mentioned that the US economy enjoy strong foundations and noted that the pace of wage growth has accelerated compared to recent years while still being weaker than normal.

Crude:-

Crude futures rose nearly two percent as the dollar index hit the lowest since September 26 following an array of data from China and the US the world's largest economy and amid expectations that US president Donald Trump will rescind the nuclear deal with Iran which led to the recovery of the country's oil exports. On the same day the International Energy Agency released its monthly report at which it forecast global demand growth for oil next year at 1.4 million bpd while forecasting an increase in oil supplies outside OPEC by 700 thousand bpd in 2017 and by 1.8 million bpd in 2018, to reach 59.6 million bpd. The report showed global crude supplies rose 90 thousand bpd in September however the IEA pointed to general stability in the oil market recently while expecting oil inventories to fall by 110 thousand bpd this year and by 200 thousand bpd in 2018. Oil futures are heading for the best weekly profit in a month after Saudi Arabia's energy ministry announced that Aramco will cut 560 thousand bpd in exports in November, as the world's largest crude exporter plans to export 7.15 million bpd despite the upward demand of 7.7 million bpd.

Copper:-

Copper prices tilted higher in American trade as the dollar index edged away from the highest since August 17 amid a lack of data from the world's largest economy and after Federal Open Market Committee member Jerome Powel's speech about regulatory reform at a financial regulation event jointly hosted by Reuters and George Washington University in Washington DC. Now markets await Fed Chair Janet Yellen's speech at a community banking conference hosted by the Federal Reserve Bank of St. Louis tomorrow after Yellen warned in a speech last week from keeping rates at their current levels until inflation hits the Fed's 2% target. That in turn raised bets on a December rate hike to 78% in financial markets and weighed on metal prices while also tomorrow European Central Bank president will give a policy speech in Frankfort Germany.

Zinc:-

Zinc prices softened by 0.17 per cent to Rs 207.15 per kg in futures market today as speculators tightened exposure taking negative cues from the spot market on subdued demand from consuming industries. At Multi Commodity Exchange zinc for delivery in October declined 35 paisa or 0.17 per cent to Rs 207.15 per kg in a business turnover of 831 lots. The metal for delivery in September contracts lost 25 paisa or 0.12 percent to Rs 209 per kg in 1,383 lots. Analysts said cutting down of positions by participants owing to slack demand from consuming industries in the physical market weighed on zinc prices.

Lead:-

Lead prices edged up by 0.18 per cent to Rs 163.10 per kg in futures trade today as participants built up fresh positions after demand from consuming industries in the spot market picked up. At Multi Commodity Exchange lead for delivery in September went higher by 30 paisa or 0.18 percent to Rs 163.10 per kg in a business turnover of 631 lots. Similarly the metal for delivery in September contracts traded higher by 25 paisa, or 0.15 per cent, to Rs 162.90 per kg in. The Lead is in perfect uptrend .Currently Lead is moving sideways .The oscillator is showing sell signal .In last 3 weeks Lead is trading in low volatility and fresh buy can be considered in the Lead if it close above 172 or buy with strict stop at 154. The Lead is now trading in overbought level. The oscillator is showing sell signal for short term Lead is in hold long position. Support for the Lead is 165. Immediate resistance for Lead is 172.

Aluminum:-

The Aluminum is in long- medium- short-medium- term bull phase .Currently Aluminum is in strong uptrend and the trend is supported with good volume the open interest is not increasing with trend. The oscillator is showing buy signal for short term Aluminum is in hold long position. Support for the Aluminum is 137. Immediate resistance for Aluminum is 142.

Natural Gas: -

Natural gas futures spiked nearly four percent in American trade as the dollar index continued moving away from the highest since July 26 for the fifth session in a row following a spate of data from the US the world's largest energy consumer including the EIA report that showed another inventory buildup for the 28th week in a row. Federal Open Market Committee member Lael Brainard participated in a panel discussion about monetary policy at the Peterson Institute for International Economics in Washington DC while Jerome Powell delivered a speech titled "Prospects for Emerging Market Economies in a Normalizing Global Economy at the Institute of International Finance Annual Membership Meeting in Washington DC as well. Otherwise the Energy Information Administration released its report on US natural gas storage showing a build-up of 87 billion cubic feet in the week ending October 6 adding to the previous reading's 42B increase while analysts expected a 74B rise. Total stocks have now reached 3.595 trillion cubic feet up from 3.508 trillion in the week ending September 29, which is below the total in the same period of 2016 at 3.748 trillion and also below the five-year average of 3.603 trillion.

Commodity  Trends:

	R1	S1
GOLD	30250	29270
SILVER	40600	38780
NATURAL GAS	198	185
CRUDE	3425	3215
COPPER	451	437
LEAD	169	160
ALUMINIUM	141	134
ZINC	219	208