Commodity market outlook: Gold may continue to trade on a positive note

Aug 16 2014, 18:13 IST
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SummaryGold futures edged higher on Thursday, as investors looked ahead to key U.S. economic data ...

Precious metal: Gold futures edged higher on Thursday, as investors looked ahead to key U.S. economic data later in the session for further clues on the health of the economy. Problems in Russia-Ukraine-Iraq-Gaza during the week caused a lot of concern in the global financial markets wherein the USDX rose while simultaneously Gold surged touching the $1323 per ounce mark, its three week high. As of the next week is concerned we are getting highly conflicting views on the commodity as on one side it is likely to continue to get support from intensifying geopolitical problems in Middle-east and Eurasia; at the same time internal gold related cues still suggest weakness. Overall the commodity may continue to trade on a positive note as tensions persisted in Ukraine and the Middle East area. However, traders note that Gold had been trading in a largely ranged manner for past couple of days. We expect Gold prices to remain higher for the week as uncertainty in Ukraine and the Middle East area and safe haven buying can push the prices higher.

Over all, MCX Gold October future is in bullish and sustaining on higher levels. So for the coming week, we are expecting good buying rally from lower levels. For the coming week 28400/28000 will act as a major support whereas 29500/30000 will act as a major resistance level in MCX Gold October future. For the next week in MCX Gold, trader can use buy on lower level strategy, if MCX Gold October future sustains above the levels of 28800 then it could test the levels 28990/29300.

Technically, MCX Silver September futures is in consolidation and sustaining in range. For the coming week 47000/48500 will act as a major resistance levels where as 42500/41000 will act as major support in MCX Silver September futures. For the next week in MCX Silver futures, traders can use buy on lower level strategy, if MCX Silver September futures sustains above 43700 then it could test the levels of 44900/46500.

Energy: Crude oil futures were lower on Thursday, after data showed that Germany’s economy contracted in the second quarter while growth in France stagnated, fuelling concerns over a slowdown in global demand.

Germany’s gross domestic product shrank by 0.2% in the three months to June, the first drop since 2012. Economists had forecasts a contraction of 0.1%. First quarter growth was also revised down to 0.7% from 0.8%

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