MCX COMMODITY MARKET TIPS & REPORT - 03 FEB 2017

Gold drifts lower in Asia with Chile mine strike in focus.  
Gold for April delivery on the Comex division of the New York Mercantile Exchange eased 0.46% to $1,213.85 a troy ounce. Gold prices rose in the U.S. on Thursday with investors keeping an eye on political risk as the Trump administration looks to find its footing at home and abroad with U.S. jobs at the end of the week expected to set a tone. A walk out could begin as early as Friday, but could be deferred for a five-day government mediation effort to attempt a resolution.  
On Wednesday, the Federal Reserve held its fire on interest rates as widely expected on Wednesday, but was optimistic on the outlook for the economy in keeping its benchmark overnight lending rate target at 0.5% to 0.75% following a 25 basis point hike in December. “Measures of consumer and business sentiment have improved of late,” the committee said in its statement, using new language that jibes with voices on Wall Street following the election of Donald Trump as president. 

Barclays: Copper Prices May Rise to over 2-Year High on Decreasing Supply. 
Barclays said copper prices may be pushed to the highest from November 2014 due to falling supply, wenhua.com reported. Copper supply has been falling due to strike at Chile’s Escondido mine and low production ratio at Freeport-McMoRan Copper & Gold’s Grasberg copper mine. Chile government reported Chile’s copper output was 5,572,375 tonnes in 2016, down 3.8% year-on-year, according to wenhua.com. The country’s copper production was 503,874 tonnes in December 2016, an increase of 1.6% year-on-year, due mainly to higher ore grade and increased operating rates at major mines. 
KAZ Minerals PLC’s copper cathode output rose 73% year-on-year to 140,300 tonnes in 2016, finet.com reported. Its copper cathode output was 43,200 tonnes in the fourth quarter of 2016. Its Bozshakol contributed additional 44,800 tonnes of output, while Aktogay contributed 18,100 tonnes of copper cathode output.  

Brent, NYMEX gain in Asia with Iran- U.S. tensions eyed. 
Crude oil posted gains in Asia on Friday with U.S. tension with Iran in focus for any spillover into the oil markets from sanction or other actions, while U.S. rig count data is ahead. 
Ahead on Friday, oilfield services firm Baker Hughes will report data on U.S. drilling activity at the end of last week that will be closely watched. Last week, Baker Hughes said the number of rigs drilling for oil in the U.S. increased by 15 last week, the 12th gain in 13 weeks. That brought the total count to 566, the most since November 2015. 
Overnight, crude prices settled lower in U.S. trade on Thursday as investors waited for end of the week rig count data and took profits on what are seen as so far adequate compliance with coordinated cuts to global oil production of almost 1.8 million barrels per day for the first six months of the year by OPEC and non-OPEC nations. 

PRECIOUS LEVEL

CS GOLD (APRIL) OVERVIEW:

TREND : BULLISH 
RESIST 2: 29200 
RESIST 1: 29000 
SUP 1: 28750 
SUP 2: 28550 

CS SILVER (MARCH) OVERVIEW:

TREND : BULLISH  
RESIST 2: 42200 
RESIST 1:41900 
SUP1: 41400 
SUP2: 41000

BASE METAL LEVELS

CS COPPER (FEB) OVERVIEW:

TREND : BEARISH 
RESIST 2:403 
RESIST 1:398 
SUP1:387 
SUP2:384 

CS NICKEL (FEB) OVERVIEW:

TREND :  BULLISH 
RESIST 2: 705 
RESIST 1: 695 
SUP1:675 
SUP2:665

CS ZINC (FEB)OVERVIEW:

TREND : BEARISH 
RESIST 2:191.00 
RESIST 1:190.00 
SUP1:186.00 
SUP2:184.00 

CS LEAD (FEB) OVERVIEW: 

TREND : BEARISH 
RESIST 2: 159.00 
RESIST 1: 157.00 
SUP1: 153.00 
SUP2: 151.00

CS ALUMINIUM (FEB) OVERVIEW: 

TREND :  SIDEWAYS 
RESIST 2: 125.50 
RESIST 1: 124.50 
SUP1: 121.50 
SUP2: 120.50  

ENERGY LEVELS

CS CRUDE OIL (FEB) OVERVIEW:                           

TREND : SIDEWAYS 
RESIST 2:3680 
RESIST 1:3640 
SUP1:3580 
SUP2:3540 

CS NATURAL GAS (FEB) OVERVIEW: 

TREND : SIDEWAYS 
RESIST 2:225.00 
RESIST 1:220.00 
SUP1:210.00 
SUP2:207.00 

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