Weekly Insight – Metal & Energy
Gold has got the strength of the receding European Union growth rate which has increased the demand of the safe haven assets. Major market players are anticipating that the bull cycle has ended in bullions which have given bearish temperament to the market, however weakness in European economy has given support to the safe haven demand. Crude oil has discounted the speculation of the possible rate cut news of the European Union which is receding the demand of fuel. However U.S crude oil inventory has started falling which is the only bullish factor for crude oil prices. Red metal is has lost the strength around the current levels as the Chinese demand is the biggest bullish factor for red metal prices. U.S might also start buying as their economy might recover from the recent downturn and can give a solid support to the base metals.
GOLD (MCX Closing Price: 31326): Gold has brought cheers to the investors in the end of the trading week as the demand of the safe haven assets have zoomed up. EU policy makers have confirmed weakness in their economy and according to ECB President Mario Draghi, the euro area will probably contract 0.5 percent this year, worse than the September forecast of 0.4 percent which has painted bullish picture for safe haven assets. Buy gold around 31200 with a stop loss of 31080 and targets can be expected around 31440/31550.
SILVER (MCX Closing Price: 62582): Silver is in the making of the double top pattern on daily charts which is bearish below the neckline of 61000. However strengthening industrial demand might support silver for short term. Silver is not willing to go down which is a bullish indicator as well hence buy above 62700 with a stop loss of 62380 and targets can be expected around 63160.
COPPER (MCX Closing Price: 444.30): Copper is unable to sustain its recent high levels which is indicating selling in red metal. Chinese strengthening economy is unable to support the red metal prices as the European Debt crisis has countered the news of strengthening Chinese economy. Global capital markets have started showing weakness which is another bearish factor red metal prices. Copper has a solid support of 438.00 hence sell below this level with a stop loss of 442.00 and targets can be expected around 433.40/430.80.
CRUDE (MCX Closing Price: 4695): Crude oil is another bear commodity as it has 100 points downfall left on receding global economic demand. However receding U.S crude oil inventories is the only bullish factor for it. Crude oil has a solid support around 4610 hence long term buying is suggested around these levels. Sell crude oil below 4675 stop loss 4710 targets can be around 4620.
NICKEL (MCX Closing Price: 938.50): Nickel markets are trading in surplus which is a bearish factor for nickel prices. Global nickel market was in surplus during January to September 2012 with production exceeding apparent demand by 89 kilo tons which has.
Gold has got the strength of the receding European Union growth rate which has increased the demand of the safe haven assets. Major market players are anticipating that the bull cycle has ended in bullions which have given bearish temperament to the market, however weakness in European economy has given support to the safe haven demand. Crude oil has discounted the speculation of the possible rate cut news of the European Union which is receding the demand of fuel. However U.S crude oil inventory has started falling which is the only bullish factor for crude oil prices. Red metal is has lost the strength around the current levels as the Chinese demand is the biggest bullish factor for red metal prices. U.S might also start buying as their economy might recover from the recent downturn and can give a solid support to the base metals.
GOLD (MCX Closing Price: 31326): Gold has brought cheers to the investors in the end of the trading week as the demand of the safe haven assets have zoomed up. EU policy makers have confirmed weakness in their economy and according to ECB President Mario Draghi, the euro area will probably contract 0.5 percent this year, worse than the September forecast of 0.4 percent which has painted bullish picture for safe haven assets. Buy gold around 31200 with a stop loss of 31080 and targets can be expected around 31440/31550.
SILVER (MCX Closing Price: 62582): Silver is in the making of the double top pattern on daily charts which is bearish below the neckline of 61000. However strengthening industrial demand might support silver for short term. Silver is not willing to go down which is a bullish indicator as well hence buy above 62700 with a stop loss of 62380 and targets can be expected around 63160.
COPPER (MCX Closing Price: 444.30): Copper is unable to sustain its recent high levels which is indicating selling in red metal. Chinese strengthening economy is unable to support the red metal prices as the European Debt crisis has countered the news of strengthening Chinese economy. Global capital markets have started showing weakness which is another bearish factor red metal prices. Copper has a solid support of 438.00 hence sell below this level with a stop loss of 442.00 and targets can be expected around 433.40/430.80.
CRUDE (MCX Closing Price: 4695): Crude oil is another bear commodity as it has 100 points downfall left on receding global economic demand. However receding U.S crude oil inventories is the only bullish factor for it. Crude oil has a solid support around 4610 hence long term buying is suggested around these levels. Sell crude oil below 4675 stop loss 4710 targets can be around 4620.
NICKEL (MCX Closing Price: 938.50): Nickel markets are trading in surplus which is a bearish factor for nickel prices. Global nickel market was in surplus during January to September 2012 with production exceeding apparent demand by 89 kilo tons which has.
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