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MCX Gold may trade range bound, investors eye US data. Gold futures for April delivery on India’s Multi Commodity Exchange (MCX) is expected to trade range bound for the day as currency movement turn volatile.“US unemployment claims and Philadelphia Federal Manufacturing Index are scheduled to be released in the evening which may impact bullion movement,”Coming to the international market, US Federal Reserve kept interest rates unchanged and made no changes to its monthly USD85 billion bond-buying program.“Cyprus is not a big story in terms of the size of its economy and the financial involvement,”“The question (on gold) at the end of the day is if we have high inflation. If your view is that inflation will gear up faster than interest rates, then the story is still good and gold should recover to $1,800 an ounce 12 months from now,”The yellow metal faces headwinds from strong dollar, which has gone up nearly 4% so far this year against a basket of currencies. By comparison, the precious metal has fallen 4 percent. Oil prices mixed in Asia as Cyprus fears grow. Oil prices were mixed in Asia Friday on fears of a possible default by Cyprus as the European Central Bank said it would halt funding to lenders if a new bailout deal was not found.New York’s main contract, light sweet crude for delivery in May added 11 cents to $92.56 a barrel while Brent North Sea crude for May delivery was down two cents to $107.45 in mid-morning trade. The withdrawal of European Central Bank support for Cypriot banks could lead a possible run by customers scrambling to withdraw their cash, resulting in the collapse of the island’s financial system.”The Cyprus debacle has thrown up big questions about the eurozone’s road to recovery which many thought would start this year,”Sentiment was further dented by data showing private business activity across the eurozone hitting a four-month low in March. The Purchasing Managers’ Index (PMI) published by London-based Market fell to 46.5 points in March against 47.9 in February, the flash estimate showed. Copper futures up on positive global cues. Copper prices moved up by 0.17 per cent to Rs 417 per kg in futures trade today as speculators enlarged their positions, taking positive cues from overseas markets. At the Multi Commodity Exchange, copper for delivery in April traded higher by 70 paise, or 0.17 per cent to Rs 417 per kg in business turnover of 35813 lots. Similarly, the metal for delivery in June edged up by 55 paise, 0.13 per cent to Rs 422.65 per kg in 1735 lots. Market analysts said speculators enlarged their positions in tandem with a firm global trend as economic data from US and China, the two biggest consumers of industrial metals, boosted demand prospects, mainly led to rise in copper prices at futures trade. As of the end of February, copper stocks held at the major metal exchanges (LME, COMEX, SHFE) totalled 734,545 t, an increase of 145,123 t from stocks held at the end of December 2012 and an increase of 86,193 t from stock levels at the end of January 2013. Compared with the January levels, stocks were up at all three exchanges. MCX GOLD Technical Trend MCX GOLD last week showed upward movement and found resistance around 29900, if it able to break this resistance then breakout of trend line on weekly chart is expected, above this next resistance is


seen near 30150. On lower side 29400 is important support for it below this again it will be in weak zone and may find next support around 29250. STRATEGY Better strategy in MCX GOLD is to buy above 29900 for the targets of 30450 with stop loss of 29400. MCX SILVER Technical Trend MCX SILVER last week showed choppy movements found resistance around 55500 and closed near its support of 53800. Now, if it able to break this support then next support is seen around 52700. On other hand if it takes reversal from current levels then it may face resistance around 56000 above this 56800 is seen as important resistance for it. STRATEGY Better strategy in MCX SILVER at this point of time is to sell below 53800 for the target of 52600, with stop loss of 55550. MCX CRUDEOIL Technical Trend Crude oil last week showed sideways movements closed below resistance level of 38.2% retracement and trend line on daily charts. Now if it able to break this resistance then next resistance is seen around 50% retracement i.e. 5190. On lower side 5075 is act as support for it below this psychological level of 5000 is seen as important support. STRATEGY Better strategy in MCX CRUDEOIL is to buy above 5140 for the target of 5240 with stop loss of 5045. MCX COPPER Technical Trend MCX Copper last week broke strong support i.e. 421.65 and found next support of 412 but unable to sustain below it and took reversal. Now 424 will act as strong resistance if it break this level then next resistance is seen around 430. On other hand if it take some correction from current level then it may drag upto 415,below this 409.50 is major support. STRATEGY Better strategy in MCX COPPER will be buy above 422, with stop loss of 414.50 for the target of 430. For more info click here Stock Tips Commodity Tips Mcx Tips


Weekly Commodity Report 25 March 2013