Weekly Commodity Market Report

         

Gold Ends the Week Broadly Flat After Jobs Report Fails to Inpire

Gold prices rose moderately into the weekend but were still down nearly 1% on the week as the onset of caution across financial markets in the last two days didn’t quite erase the bullishness of the previous three. Prices for almost all assets have been supported this week by further moves by central banks to add liquidity and loosen policy in response to concerns about the impact of the novel coronavirus on the Chinese economy and consequently the world economy.The impact of those supportive measures, which have included massive liquidity injections in China, coupled with interest rate cuts in Brazil, Thailand and, on Friday, Russia, has been amplified by a string of economic data from the U.S. which have shown the U.S. economy in decent health.

Oil rises after Russia supports possible supply cuts

Oil prices climbed on Friday after Russia said it backs a recommendation for OPEC and other producers to deepen output cuts amid falling demand for crude as China battles the coronavirus epidemic that has hit global markets. Chinese President Xi Jinping declared a “people’s war” on the epidemic as China’s Hubei province, where Wuhan is located, reported 69 new deaths, taking the total in the country to more than 600. Impact of the coronavirus on the oil market remains largely a Chinese demand story with weakening jet fuel demand and economic run cuts, but demand destruction outside of China has been minimal.

China Reneges on Commodity Deals, Worsening Trade Chaos

Global commodity trade plunged deeper into chaos as Chinese companies started walking away from purchase contracts because of the spread of the deadly coronavirus.

A Chinese buyer of liquefied natural gas and a copper importer declared what’s known as force majeure — meaning they are reneging on deals as the virus constrains their ability to take deliveries. The cancellations are among the first known cases of the legal clause being invoked in commodity contracts due to the epidemic. Hours later, it emerged that Chinese copper smelter Guangxi Nanguo had also declared the same get-out clause, refusing to take delivery of raw materials.

  

TECHNICAL VIEW

MCX Gold last week showed straight bearish movement and drag downward towards the support level of 39900 and closed around 40500. For upcoming week if price trades above 41000 levels then it can give upside movement up to next psychological resistance level of 42000. On lower side, if price slide towards lower side than 39900 will act as vital support level below this momentum can find next support level at 39250.

STRATEGY

Better strategy in MCX GOLD is to buy above 41000 for the target of 41500 with stop loss of 40500.

TECHNICAL VIEW

MCX Silver last week showed sideways to bearish movement after took a resistance of 47300. For upcoming trading session we will continue to suggesting bearish trend, if price sustains below 45000 levels and after that 44000 to 43500 will act as a next important support level. On higher side it has immediate resistance at 48000 and if price maintain above this level then it will take towards the resistance level of 49500.

STRATEGY

Better strategy in MCX SILVER is to sell below 45200 for the target of 44000, with stop loss of 46500.

TECHNICAL VIEW

MCX Crude oil last week showed sideways to bearish movement in whole week and found near to its support zone i.e. around 3550 levels. For upcoming period if  bearishness will active towards support level of 3500 then after that 3300 will be next immediate support and if price takes bullish movement from current levels towards upside side then it can test resistance level of 3800 and after that 4000 will act as a next resistance level.

STRATEGY

Better strategy in MCX CRUDE is to buy above 3750 for the target of 3900, with stop loss of 3550.

TECHNICAL VIEW

MCX Copper last week showed correction on higher side after took important support level of 420.50. For upcoming session, if price maintains above 440 levels then it may give more upside movement towards next resistance level of 450. On lower side it has support level at 420 and if sustain below 420 level then it will move down towards the next major support level of 410.

STRATEGY

Better strategy in MCX COPPER is to sell below 425 for the target of 415, with stop loss of 435.

(Click to submit your details) Just one step to get best trading tips.