MCX COMMODITY MARKET NEWS & LEVELS - 04 JULY 2017

Gold hits 8-week low as US bond yields spike.  
Gold prices slumped lower on Monday, pressured by a sharp uptick in U.S. bond yields in the wake of upbeat manufacturing activity suggesting that U.S. economic growth remained robust. Gold is set to make a negative start to the month, after better than expected manufacturing data fuelled U.S. rate hike expectations, underpinning a move higher in U.S. bond yields, lessening demand for non-interest bearing gold. The upbeat manufacturing data lifted U.S. 10-Year to a two-month high of 2.353, spurring a rally in the greenback against its rivals, adding further pressure on the precious metal. Gold is sensitive to moves higher in both bond yields and the U.S. dollar – A stronger dollar makes gold more expensive for holders of foreign currency while a rise in U.S. rates, lift the opportunity cost of holding non-yielding assets such as bullion.

 SHFE 1708 Zinc Continues Rising.  
SHFE 1708 zinc opened at RMB 22,775/mt today and then hovered around RMB 22,730/mt. Caixin’s June manufacturing PMI for China was upbeat, inspiring market confidence. This helped zinc rise. In the afternoon, ferrous metals remained strong, driving up zinc prices. SHFE zinc rose and closed at RMB 23,070/mt, up RMB 515/mt or 2.28%.

China Aluminum Stocks Return to Growth, SMM Reports.   
Aluminum ingot stocks in China’s five major markets (Shanghai, Wuxi, Nanhai, Hangzhou and Gongyi) returned to growth last week after falling for two weeks in a row. Total stocks in these five regions increased 10,000 tonnes week-on-week to 1.2 million tonnes as of June 30, SMM statistics showed.SMM attributes the increase to softening downstream consumption. SMM sees further increase in aluminum stocks in July, citing growing supply and weakening demand.   

Crude dips in Asia with U.S. markets shut for Fourth of July holiday. 
Crude prices fell in Asia on Tuesday ahead of the Fourth of July holiday in the U.S. with markets shut and trade thin. Overnight, crude futures settled higher for the eighth session in a row on Monday, as market participants continued to cheer data suggesting that U.S. output could be tightening. The weekly rig count is an important barometer for the drilling industry and serves as a proxy for oil production and oil services demand. Investors cheered the surprise dip in the number of active U.S. drilling rigs, as fears that rising U.S. output would add to the glut in supply have remained front and center, weighing on sentiment for the first half of the year. Despite the recent rally in oil prices, analysts continue to expect that crude futures will resume their downtrend, as Opec and its allies’ are struggling to address the fundamental problem of oversupply, which has pressured prices over the last three years.

Precious Levels
CS GOLD (AUG) OVERVIEW: 
TREND : BEARISH
RESIST 2: 28350
RESIST 1: 28250
SUP 1: 27900
SUP 2: 27800

CS SILVER (JULY) OVERVIEW: 
TREND : BEARISH
RESIST 2: 38200
RESIST 1: 38000
SUP1: 37300
SUP2: 37100

Base Metal Levels
CS COPPER (AUG) OVERVIEW: 
TREND : BULLISH
RESIST 2:393
RESIST 1:390
SUP1:383
SUP2:380

CS NICKEL (JULY) OVERVIEW: 
TREND : BULLISH
RESIST 2:618
RESIST 1:613
SUP1:593
SUP2:588

CS ZINC (JULY) OVERVIEW: 
TREND : BULLISH
RESIST 2:185.00
RESIST 1:184.00
SUP1:179.00
SUP2:177.50

CS LEAD (JULY) OVERVIEW: 
TREND : BULLISH
RESIST 2: 155.00
RESIST 1: 153.00
SUP1: 148.00
SUP2: 146.00

CS ALUMINIUM (JULY) OVERVIEW: 
TREND : BULLISH
RESIST 2: 127.00
RESIST 1: 125.50
SUP1: 123.50
SUP2: 122.00

Energy Levels
CS CRUDE OIL (JULY) OVERVIEW: 
TREND : BULLISH
RESIST 2:3180
RESIST 1:3130
SUP1:2990
SUP2:2940

CS NATURAL GAS (JULY) OVERVIEW: 
TREND : SIDEWAYS
RESIST 2:198.00
RESIST 1:196.00
SUP1:187.00
SUP2:185.00
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