DAILY MCX COMMODITY MARKET NEWS & LEVELS - 29 MAY 2017

Gold drifts weaker in Asia, shrugs off NKorea missile test.   
Gold fell slightly in Asia on Monday, shrugging off the latest missile test by North Korea and drifting in trade with China, the U.S. and The U.K. markets shut for holidays. The U.S. economy grew faster than initially reported during the first three months of 2017, easing concerns about a potential slowdown in the U.S. economy. The dollar leaped to a four-day high, and pressured commodity prices across the broad, as expectations for a June rate hike rose to its highest level this week. According to investing.com’s Fed rate monitor tool more than 80% of traders expect the Federal Reserve to hike its benchmark rate in June, compared to below 70% of traders in the previous week.  
Gold is sensitive to moves higher in both U.S. rates and the 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.  

Zinc Prices to Fall in Coming Week, SMM Foresees  
India's Zinc prices are expected to fall slightly in the coming week, SMM foresees.SHFE zinc will meet resistance from the 20-week moving average, and see technical fall in the coming week, SMM added. Arriving shipments grew slightly, but outward shipments received a boost as trading improved in the latter half of the week. Zinc consumption in Tianjin also picked up after environmental protection push. Total inventories in the three regions are expected to remain stable in the coming week, SMM predicts.  

LME Lead to See Range-Bound Trading, SMM Forecasts.  
LME lead, facing lack of upward strength, will trade at $2,050-2,120 per ton in the coming week, SMM expects. Transaction in China’s domestic market will improve in anticipation of rising downstream consumption.

Oil drops after OPEC-led output cut extension falls below expectations. 
Oil prices remained weak on Monday as a relentless rise in U.S. drilling undermined an OPEC-led push to tighten supply. Traders said activity was likely to be subdued due to public holidays on Monday in China, the United States and Britain. An initial agreement, which has been in place since January, would have expired in June this year. "The immediate market reaction to the May 25 OPEC decision is indicative of the weaker-than-expected impact production cuts had on bloated global crude stocks over H1 2017," BMI Research said in a note. Analysts say that reducing bloated global fuel inventories will be key to reining in ongoing oversupply. "It's going to be all about inventories and whether they fall as much as OPEC thinks," said Greg McKenna, chief market strategist at futures brokerage AxiTrader. 

Precious Levels
CS GOLD (JUNE) OVERVIEW: 
TREND : SIDEWAYS 
RESIST 2: 29300 
RESIST 1: 29100 
SUP 1: 28800 
SUP 2: 28600  

CS SILVER (JULY) OVERVIEW: 
TREND : SIDEWAYS 
RESIST 2: 41100 
RESIST 1: 40800 
SUP1: 39700 
SUP2: 39400 

Base Metal Levels
CS COPPER (JUNE) OVERVIEW: 
TREND : BEARISH 
RESIST 2:374 
RESIST 1:371 
SUP1:363 
SUP2:358 

CS NICKEL (MAY) OVERVIEW: 
TREND : SIDEWAYS 
RESIST 2:605 
RESIST 1:590 
SUP1:575 
SUP2:565 

CS ZINC (MAY) OVERVIEW: 
TREND : SIDEWAYS 
RESIST 2:173.00 
RESIST 1:172.00 
SUP1:167.00 
SUP2:166.00 

CS LEAD (MAY) OVERVIEW: 
TREND : BULLISH 
RESIST 2: 139.50 
RESIST 1: 138.00 
SUP1: 133.00 
SUP2: 131.50 

CS ALUMINIUM (MAY) OVERVIEW: 
TREND : SIDEWAYS 
RESIST 2: 129.00 
RESIST 1: 127.50 
SUP1: 125.00 
SUP2: 124.00 

Energy Levels
CS CRUDE OIL (JUNE) OVERVIEW: 
TREND : BEARISH 
RESIST 2:3350 
RESIST 1:3300 
SUP1:3150 
SUP2:3100 

CS NATURAL GAS (JUNE) OVERVIEW: 
TREND : BEARISH 
RESIST 2:221.00 
RESIST 1:216.00 
SUP1:205.00 
SUP2:200.00 

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