Weekly Commodity News Letter

Gold:-

Gold futures fell in American trade to the lowest since November 6 even as the dollar index swooned to the lowest since October 26 following a basket of data from China the world's largest metals consumer and the US and after speeches by major global central bank governors in Frankfort. Chinese retail sales slowed down as well to 10% from 10.3% in September missing forecasts of 10.5% as several global central bank governors participated in a panel discussion titled at the heart of policy challenges and opportunities of central bank communication at the Central Bank Communications Conference hosted by the European Central Bank in Frankfurt. Otherwise US producer prices rose 0.4% in October beating expectations of 0.1% and same as September while core prices excluding food and fuel prices also rose 0.4% same as before and passing forecasts of a 0.2% advance. Similarly US Treasury Secretary Steven Mnuchin said earlier today he's not worries about whether the Senate tax reform bill could delay reforms noting there were but small differences on tax cuts between the bills in the Senate and the House of Representatives and asserting US president Donald Trump targets a growth rate of 3% or above for the economy.

 

Silver:-

Silver futures rose over one percent in American trade to the highest since October 16 heading for the second weekly profit in a row as the dollar index lost ground away from four-month highs following earlier data from the US the world's largest economy. On Thursday the House of Representatives passed the tax reform bill by a 227-205 margin shifting the legislative final struggle to the Senate amid concerns the upper house could delay the reforms supported by President Donald Trump which would cut the corporate tax rate to 20% from 35% until 2019.  The Silver is in long- short-medium- short- term bull phase Currently Silver is in strong uptrend with good momentum 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 the current position is buying. Support for the Silver is 39100.Resistance for the Silver is 40500.

Crude:-

Oil futures rose over two percent in American trade, marking the best performance in two weeks while still heading for the first weekly decline in six as the dollar lost ground, following a basket of data from the US the world's largest energy consumer and after statements of Saudi energy minister Khalid Al Faleh ahead of OPEC's meeting in Vienna. On Wednesday the Energy Information Administration released its report on US crude stocks showing a buildup of 1.9 million barrels in the week ending November 11 adding to the previous week's 2.1M increase while analysts expected a 2.1M drop with total stocks now reaching 459.0 million barrels remaining within the upward range on average in this time of year. Earlier this week the International Energy Agency cut its projections for global oil demand in 2018 by 200 thousand bpd to 98.9 million bpd while cutting forecasts for global demand growth by 100 thousand bpd to 1.3 million bpd, as a more-than-usual moderate weather in the winter hurt heating fuel demand while the recent spike in prices pave the way for more US shale production and hurt the market balance efforts in 2018.

Copper:-

Copper prices tumbled nearly three percent in American trade, moving farther away from the highest since July 30 2014 for the seventh session out of ten while the dollar index muscled up to the highest since July 20 following an array of data from the US the world's largest economy. A recent report from commodity analysts at said that many experts believe that the copper market is facing a speculative surge on a wide level that's not properly based. The report pointed to Chilean state-owned copper mining company Codelco as an example of recent speculation while noting that the company itself said recently that copper prices are considerably above their reasonable limits and that gains in recent months were not sustainable after copper prices rose 27% before profit-taking set in.

Zinc:-

The Zinc is in long term bull phase .Currently Zinc is in strong downtrend with good momentum and the trend is supported with good volume the open interest is not increasing with trend. Noting point is selling at lower levels seems decreasing. The oscillator is showing sell signal for short term Zinc is in hold short position. Support for the Zinc is 204.Resistance for the Zinc is 213. Zinc has soared 23 per cent this year extending a 60 per cent jump in 2016, as cuts in global mine supply and China’s crackdown on pollution and mine safety created a shortage. Price swings have increased with the metal’s 60-day volatility near the highest level since June. Macquarie Group Ltd. said this month zinc may peak between $3,350 and $3,400 within six months.

Lead:-

The Lead is in long- term bull phase .Currently Lead is in strong uptrend with good momentum but volume is unsatisfactory 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 the current position is buying. Support for the Lead is 154-.Resistance for the Lead is 165. Analysts attributed the rise in lead futures to fresh positions from traders after uptick in demand from battery- makers in the spot market.

Aluminum:-

The Aluminum is in long- term bull phase .Currently Aluminum is in strong downtrend and the trend is supported with good volume the open interest is not increasing with trend. The oscillator is showing SELL signal for short term Aluminum is in sell position. Support for the Aluminum is 134.Resistance for the Aluminum is 138.

Natural Gas: -

Natural gas futures fell nearly one percent as the dollar index rebounded for the second session from the lowest since October 20 following earlier data from the US the world's largest energy consumer including the EIA report that showed a more-than-expected inventory drawdown. The Philly Manufacturing Index slowed down sharply to 18.9 in November from 27.9 in October missing analysts ‘expectations of a smaller drop to 24.5. The Energy Information Administration released its report on US natural gas inventories, showing a drop of 18 billion cubic feet in the week ending November 11 compared to a 15B buildup in the previous reading while analysts expected a 15B drawdown. Total stocks have now fallen to 3.772 trillion cubic feet from 3.790 trillion in the week ending November 3 which is below the total of the same period of 2016 at 4.043 trillion and also below the five-year average at 3.873 trillion.

Commodity  Trends:

	R1	S1
GOLD	30100	29150
SILVER	40500	39100
NATURAL GAS	214	199
CRUDE	3770	3470
COPPER	449	429
LEAD	165	154
ALUMINIUM	138	134
ZINC	213	204