MCX COMMODITY MARKET TIPS & LEVELS - 06 JAN 2017

HIGH LIGHTS:-

• Gold prices edge up in Asia as U.S, jobs data ahead. 
• Oil steady after Saudis, Abu Dhabi cut supplies. 
• LME Copper to Remain Range-Bound Trading.

PRECIOUS METALS:- 

Gold prices edged higher in Asia on Friday with jobs data in the U.S. eyed for signals on the prospects of the Fed rate hike path in 2017. Gold for February delivery on the Comex division of the New York Mercantile Exchange eased 0.20% to $1.178.95 a troy ounce.  Nonfarm payrolls data from the U.S. later Friday is expected to set the tone for gold as it is sensitive to higher interest rates and a stronger dollar. The Fed in December forecast as many as three rate hikes in 2017.  Overnight, gold prices rallied to a four-week high on Thursday, as the U.S. dollar stepped further away from a 14-year peak against a basket of major currencies following the release of commentary from the Federal Reserve.   PRECIOUS LEVEL

CS GOLD (FEB) OVERVIEW:

TREND : BULLISH 
RESIST 2: 28200 
RESIST 1: 28000 
SUP 1: 27770 
SUP 2: 27620

CS SILVER (MARCH) OVERVIEW:

TREND :   BULLISH 
RESIST 2: 41000 
RESIST 1: 40600 
SUP1: 39700 
SUP2: 39350

BASE METALS:-

LME copper is expected to move at USD 5,550-5,650/mt during Asian trading hours on Friday and SHFE 1703 copper will move at RMB 45,200-45,950/mt. In China’s domestic market, spot copper should trade at discounts of RMB 120-40/mt on Friday. 
Eyes should be on US nonfarm payroll report in December, unemployment rate and salary growth on Friday, and any change will make effect on foreign exchange market, affecting market’s sentiment in base metal market. Although US dollar index kept falling on Thursday night, most base metals both on SHFE and LME markets dropped after meeting resistance from the moving averages. Base metals are expected to keep performing mixed on Friday. US’s nonfarm payroll report will increase 180,000 in December after seasonal adjustment and unemployment will expand to 4.7%. Average hourly salary will rise 0.3% MoM and 2.8% YoY in December.  

BASE METAL LEVELS

CS COPPER (FEB) OVERVIEW:

TREND : SIDEWAYS 
RESIST 2:386 
RESIST 1:384 
SUP1:375 
SUP2:372 

CS NICKEL (JAN) OVERVIEW:

TREND :  BULLISH 
RESIST 2: 715 
RESIST 1: 710 
SUP1: 685 
SUP2: 677 

CS ZINC (JAN)OVERVIEW:

TREND :  BULLISH 
RESIST 2:181.00 
RESIST 1:179.00 
SUP1:174.00 
SUP2:172.00

CS LEAD (JAN) OVERVIEW: 

TREND :  BULLISH 
RESIST 2: 140.00 
RESIST 1: 138.00 
SUP1: 133.00 
SUP2: 133.00 

CS ALUMINIUM (JAN) OVERVIEW: 

TREND : SIDEWAYS 
RESIST 2: 117.50 
RESIST 1: 116.50 
SUP1: 114.00 
SUP2: 113.00 

ENERGIES:- 

Oil prices were steady on Friday as the start of supply cuts by Saudi Arabia and Abu Dhabi supported the market, but doubts that all producers will implement output reductions agreed in a landmark deal last year kept markets from rising further. Thursday's prices rose following reports of supply cuts from Saudi Arabia and Abu Dhabi coming into effect as part of efforts by the Organization of the Petroleum Exporting Countries (OPEC) and other producers to curb a global supply glut. 
Overall supply from OPEC in December fell slightly to 34.18 million barrels per day (bpd) from a revised 34.38 million bpd in November, according to a Reuter’s survey this week based on shipping data and information from industry sources. While traders said oil markets were well supported by the agreed cuts, they said doubts remained that all producers would fully implement planned reductions. 
ENERGY LEVELS

CS CRUDE OIL (JAN) OVERVIEW:                           

TREND :  SIDEWAYS 
RESIST 2:3720 
RESIST 1:3680 
SUP1:3600 
SUP2:3550

CS NATURAL GAS (JAN) OVERVIEW: 

TREND : BEARISH 
RESIST 2:231.00 
RESIST 1:229.00 
SUP1:218.00 
SUP2:215.00

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