Gold Prices Slip on News of Phase One Trade News; U.K. Election in Focus
Gold prices are modestly down on Friday in Asia after reports said an agreement in principle had been reached on a phase one trade deal between the U.S. and China.
The written text of the phase one agreement is still being finalized, reports said, but the U.S. has agreed not to impose more tariffs on China this weekend as originally planned.
Brexit developments were also closely monitored as Prime Minister Boris Johnson won a majority of parliamentary seats and will continue his attempt to resolve the Brexit crisis.
Oil Rises Near Three-Month High on Initial U.S.-China Trade Pact
Oil rose near the highest level in almost three months after U.S. President Donald Trump signed off on a partial trade deal with China, giving a boost to the fragile outlook for global oil demand.
Crude is poised for a modest gain this week due to the positive sentiment around the trade deal, having surged by more than 7% last week as OPEC and its allies announced a surprise production cut. Yet as the details of the U.S.-China agreement remain scarce, and concerns linger over whether OPEC will follow through on its agreement, the sources of support for prices appear fragile.
Base Metals: Zinc, aluminium edge up in futures amid high demand Lead prices on Thursday drifted 0.1 per cent lower to Rs 153.70 per kg in futures market as speculators cut bets on low demand.
Zinc prices edged higher by 0.3 per cent to Rs 181.80 per kg in futures market on Thursday as traders built up fresh positions.
Aluminium prices on Thursday edged up 10 paise to Rs 132.75 per kg in futures market after speculators built up fresh positions amid positive trend at the spot market. Nickel futures on Thursday declined by Rs 3.60 at Rs 1,010.70 per kg due to sluggish demand at the spot market. Copper futures on Thursday traded 0.33 per cent lower at Rs 440.60 per kg in futures trade as speculators reduced exposure on weak spot demand.
MCX Gold last week showed sideways to bullish movement in first half of week and in last two sessions drags down towards the support level of 37450 and closed around it. For upcoming week if price trades above 38000 levels then it can give upside movement up to next psychological resistance level of 38500. On lower side, if price still slide towards lower side than 37400 will act as vital support level below this momentum can find next support level at 36800.
Better strategy in MCX GOLD is to sell below 37400 for the target of 37000 with stop loss of 37850.
MCX Silver last week showed sideways to bullish movement and pull towards the resistance level of 44700. For upcoming trading session we will continue to suggesting bearish trend, if price sustains below 43400 levels and after that 42000 to 41000 will act as a next important support level. On higher side it has immediate resistance at 45000 and if price maintain above this level then it will take towards the resistance level of 47000.
Better strategy in MCX SILVER is to sell below 43400 for the target of 42000, with stop loss of 45000.
MCX Crude oil last week showed bullish movement in whole week and close at resistance zone i.e. around 4280 levels. For upcoming period if bearishness will active towards support level of 4100 then after that 3900 will be next immediate support and if price takes bullish movement from current levels towards upside side then it can test resistance level of 4300 and after that 4500 will act as a next resistance level.
Better strategy in MCX CRUDE is to buy above 4270 for the target of 4400, with stop loss of 4100.
MCX Copper last week showed bullish movement, in last trading session pull towards the resistance level of 445. For upcoming session, if price maintains above 446 levels then it may give more upside movement towards next resistance level of 455. On lower side it has psychological support level at 440 and if sustain below 440 level then it will move down towards the next major support level of 430.
Better strategy in MCX COPPER is to sell below 440 for the target of 430, with stop loss of 450.
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