Gold Prices Gain; Set to Record Best Week since April 2016
Gold prices gained on Friday in Asia amid concerns surrounding the U.S.-China trade war.The safe-haven metal surged this week after China devalued its yuan in response to the U.S. threat to impose more tariffs on Chinese goods.The People’s Bank of China set its yuan midpoint weaker than 7 for two days in a row on Thursday and Friday. The level is the weakest since April 2008.Stock markets were under pressure this week in the face of pending U.S. tariff increases on Chinese products in September, which increased safe-haven demand.There was speculation that the U.S. Federal Reserve will have to cut rates further if the ongoing Sino-U.S. trade war worsens.
Oil prices rise on expectations of more OPEC output cuts.
Oil prices inched higher on Friday as expectations of more OPEC production cuts provided some support, although concerns over the long-running U.S.-China trade dispute kept a lid on gains.U.S. West Texas Intermediate (WTI) futures were at $52.68 per barrel, up 14 cents, or 0.3%, from their last close.Both contracts jumped more than 2% on Thursday to recover from January lows, buoyed by reports that Saudi Arabia, the world’s biggest oil exporter, had called other producers to discuss the recent slide in crude prices. Oil prices have still lost more than 20% from peaks reached in April, putting them in bear territory.
LME base metals consolidate down in low-vol trade; lead spreads tight
three-month base metals prices on the London Metal Exchange were broadly lower during morning trading on Friday August 9, with turnover predominantly low across the complex while continued buying momentum in lead this week tightened nearby spreads.Despite a 0.4% downturn this morning, the three-month nickel price held onto gains made earlier in the week, coming down from a 16-month high of $16,690 per tonne on Thursday to trade at $15,750 per tonne.
MCX Gold price last week showed strong upward side movement and broke its strong resistance level of 38000. For upcoming week, if price takes correction from higher to lower side then this momentum can find next correctional level of 37500 and if price hold on higher side then we will keep bullish trend up to next resistance level of 38300 and if price maintains above this level then 38600 will act as a next important resistance level.
Better strategy in MCX GOLD is to buy above 38200 for the target of 38800 with stop loss of 37500.
MCX Silver last week showed strong bullish movement and also broke its psychological resistance level of 43000. For upcoming period we will keep upward scenario, if price maintain above 43500 and after that this momentum can find next important resistance level of 44000. On lower side it has major support at 42500 and below this level price will push for sharp correction towards next support level of 42000 as well as trend may also change.
Better strategy in MCX SILVER is to buy above 43700 for the target of 44700, with stop loss of 42700.
MCX Crude oil last week broke its strong support level of 3750 and showed bearish movement but at the end of the week it took reverse movement from lower levels. For upcoming trading session it may take quick recovery from lower to higher side up to next resistance level of 3850 and if price manages above this level then we will continue to suggesting bullish movement up to next resistance level of 3950. On lower side it has immediate support at 3700 and below this level 3600 will act as a next important support level.
Better strategy in MCX CRUDE is to buy above 3900 for the target of 4100, with stop loss of 3600.
MCX Copper last week took reverse movement from its support i.e. 430 levels and showed sideways to bullish movement. For upcoming session, if price trades above 450 level then again upward scenario will active up to next resistance level of 460 and if price takes correction from higher to lower side then this momentum can find next correctional level of 435 and if price sustains below this level 425 will be next support level as well as trend will also be change.
Better strategy in MCX COPPER is to sell below 439 for the target of 430, with stop loss of 450.
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