MCX COMMODITY MARKET NEWS & LEVELS - 04 JAN 2017

HIGH LIGHTS:-

• Gold prices dip in Asia with Fed minutes eyed for policy views. 
• Oil prices edge up on expectations of tightening supplies. 
• SHFE Copper to Move in a Tight Range. 

PRECIOUS METALS:- 

Gold prices eased in Asia as a strong dollar weighed and investors awaited further clues on the greenback from Federal reserve minutes due to be released later in the day.  On the Comex division of the New York Mercantile Exchange gold for February delivery fell 0.26% to $1,159.00 a troy ounce, while silver futures eased 0.10% to $16.392 a troy ounce. Copper futures dipped 0.24% to $2.481 a pound.  Overnight, gold prices rose despite a stronger dollar against a basket of currencies surging to a 14-year high. Gold is prices in dollars, making it potentially more expensive countries such as India and China, the top buyers globally. At its December meeting the Fed raised interest rates for the first time in a year and forecast as many as three hikes in 2017, making the tone of the discussion of high interest to markets.  PRECIOUS LEVEL

CS GOLD (FEB) OVERVIEW:

TREND : BULLISH 
RESIST 2: 27950 
RESIST 1: 27850 
SUP 1: 27450 
SUP 2: 27300

CS SILVER (MARCH) OVERVIEW:

TREND :   BULLISH 
RESIST 2: 40900 
RESIST 1: 40600 
SUP1: 39600 
SUP2: 39000 

BASE METALS:-

LME copper is expected to move at USD 5,475-5,580/mt during Asian trading hours on Wednesday and SHFE 1703 copper will move at RMB 45,150-46,000/mt. 
In China’s domestic market, spot copper should trade at discounts of RMB 200-100/mt on Wednesday. 
Economic data will make limited effect on base metals on Wednesday. Attention should be on final reading of Eurozone’s Markit services and composite PMIs in December and fresh reading of CPI in December on a yearly basis. Base metals dropped across the board both on SHFE and LME markets on Tuesday, the first trading day in 2017. As base metals stopped falling and stabilized at the tail of Tuesday’s trading, metals are expected to revise slightly on Wednesday but will remain weak.  

BASE METAL LEVELS

CS COPPER (FEB) OVERVIEW:

TREND : SIDEWAYS 
RESIST 2:385 
RESIST 1:382 
SUP1:369 
SUP2:365 

CS NICKEL (JAN) OVERVIEW:

TREND :  SIDEWAYS 
RESIST 2: 710 
RESIST 1: 700 
SUP1: 680 
SUP2: 670

CS ZINC (JAN)OVERVIEW:

TREND :  SIDEWAYS 
RESIST 2:178.00 
RESIST 1:177.00 
SUP1:172.00 
SUP2:170.00

CS LEAD (JAN) OVERVIEW: 

TREND :  BULLISH 
RESIST 2: 140.00 
RESIST 1: 139.00 
SUP1: 135.00 
SUP2: 133.00

CS ALUMINIUM (JAN) OVERVIEW: 

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

ENERGIES:- 

Oil edged higher on Wednesday, with top exporter Saudi Arabia expected to raise prices for its crude as part of planned supply cuts, although a strong dollar and moderate economic growth prospects restricted gains. 
Traders said the gains were due to an expected tightening of physical oil supplies, as major producers like the Organization of the Petroleum Exporting Countries (OPEC) plan to cut crude output from this month in an effort to end a global fuel glut that has dogged markets for over two years. 
Potentially reflecting a tightening market, top oil exporter Saudi Arabia is expected to raise the official selling price (OSP) for all its crude grades to Asia in February. 
OSPs for crude delivered to customers around the world are a key indicator in determining the prices for crude futures like Brent or WTI. 

ENERGY LEVELS

CS CRUDE OIL (JAN) OVERVIEW:                           

TREND :  SIDEWAYS 
RESIST 2:3720 
RESIST 1:3680 
SUP1:3550 
SUP2:3500 

CS NATURAL GAS (JAN) OVERVIEW: 

TREND : BEARISH 
RESIST 2:236.00 
RESIST 1:234.00 
SUP1:222.00 
SUP2:220.00 

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