MCX COMMODITY MARKET TIPS & LEVELS - 15 DEC 2016

HIGH LIGHTS:-

• Gold drops in Asia as Fed rate hike guidance dims outlook. 
• Oil prices fall after Fed hike, but tighter market looms. 
• LME Copper to Keep Range-Bound Trading. 
  

PRECIOUS METALS:- 

Gold prices fell smartly in Asia as the Federal Reserve said it may need to hike rates three times in 2017 as it made a widely expected nudge up in its policy rate on Wednesday.  Gold futures on the Comex division of the New York Mercantile Exchange dropped 1.66% to $1,144.35 a troy ounce, while silver futures plunged 2.26% to $16.832 a troy ounce.   Overnight, gold prices fell on the Federal Reserve interest rate hike and provided guidance of as many as three increases next year, with investors focused on plans by President-elect Donald Trump to cut taxes and spend heavily on infrastructure. PRECIOUS LEVEL

CS GOLD (FEB) OVERVIEW:

TREND :  BEARISH 
RESIST 2: 27600 
RESIST 1: 27450 
SUP 1: 27000 
SUP 2: 26800

CS SILVER (MARCH) OVERVIEW:

TREND : BEARISH 
RESIST 2: 41800 
RESIST 1: 41400 
SUP1: 40500 
SUP2: 40000

BASE METALS:-

LME copper is expected to range between USD 5,660-5,750/mt during Asian trading hours on Thursday and SHFE 1702 copper will move at RMB 46,200-46,900/mt. 
December manufacturing PMIs from US, Germany and Europe, New York Fed’s and Philadelphia Fed’s manufacturing index in December and US November CPI will be released today. After the Fed hiked interest rate, base metals will diverge today given strong US dollar. 
The Fed hiked interest rate at its December policy meeting. Fed Chair Janet Yellen said they expect to raise interest rate for three times in 2017 and 2018, respectively, driving up the US dollar to as high as 102.35, the highest in 13.5 years. Crude oil fell below USD 51/bbl., and gold and silver plunged. 

BASE METAL LEVELS

CS COPPER (FEB) OVERVIEW:

TREND : BULLISH 
RESIST 2:398 
RESIST 1:396 
SUP1:387 
SUP2:384

CS NICKEL (DEC) OVERVIEW:

TREND :  SIDEWAYS 
RESIST 2: 792 
RESIST 1: 780 
SUP1: 763 
SUP2: 755

CS ZINC (DEC)OVERVIEW:

TREND :  BULLISH 
RESIST 2:194.00 
RESIST 1:192.00 
SUP1:184.50 
SUP2:182.50

CS LEAD (DEC) OVERVIEW: 

TREND :  BULLISH 
RESIST 2: 163.00 
RESIST 1: 161.00 
SUP1: 156.00 
SUP2: 154.00 

CS ALUMINIUM (DEC) OVERVIEW: 

TREND : BULLISH 
RESIST 2: 120.00 
RESIST 1: 119.00 
SUP1: 116.50 
SUP2: 115.50 

ENERGIES:- 

Oil prices dropped on Thursday as a hike in U.S. interest rates drove money away from commodities and into U.S. bonds and the dollar, but a tighter fuel market looms in 2017 due to planned production cuts led by OPEC and Russia. 
Those losses came on the back of declines seen late on Wednesday, when crude fell over 3 percent due to a strong dollar. 
The greenback shot close to 14-year highs against a basket of other currencies as the U.S. Federal Reserve raised rates for the first time in a year. 
A stronger dollar, in which oil is traded, can hit crude demand as it makes fuel purchases more expensive for countries using other currencies at home. 

ENERGY LEVELS

CS CRUDE OIL (DEC) OVERVIEW:                           

TREND : BEARISH 
RESIST 2:3550 
RESIST 1:3530 
SUP1:3420 
SUP2:3400

CS NATURAL GAS (DEC) OVERVIEW: 

TREND : BULLISH 
RESIST 2:249.00 
RESIST 1:246.00 
SUP1:238.00 
SUP2:235.00 

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