Commodity market outlook: Gold price gets Euro, ECB boost

Feb 08 2014, 15:15 IST
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Gold prices moved steady in this week. Gold prices moved steady in this week.
SummaryGold prices moved steady in this week, supported by stronger Euro news that European Central Bank held off from loosening policy.

Gold prices moved steady in this week, the prices were supported by the stronger Euro news the European Central Bank held off from loosening policy, where as better than expected U.S. jobless claims capped the prices of the metal. There are sentiments in the market that harsh winter weather may press economic indicators and no decrease in demand have given the dollar some support and softened gold.

Over all, MCX Gold April future is in consolidation and sustaining in range. For the coming week 28600/28320 will act as a major support whereas 29070/29300 will act as a major resistance levels. For the next week in MCX Gold, trader can use sell on higher level strategy, if MCX Gold April future sustain below the levels of 29000 then it could test the levels 28550 /28300.

Technically, MCX Silver March futures is consolidated and sustaining around lower levels. For the coming week 45650/47300 will act as major resistance levels whereas 43600/42700 will act as major support in MCX Silver March futures. For the next week in MCX Silver futures, traders can use sell on higher level strategy, if MCX Silver March futures sustains below 45100 then it could test the levels of 43800/42900.

Energy:

Crude prices fluctuated between a small range as the investor remained outside the market to await the January jobs data in U.S. Poor U.S. Manufacturing data released earlier in the week sparked concerns over a possible slowdown in the economic recovery that softened oil prices.

For the coming week 6044/5700 will act as major supports levels whereas 6170/6310 will act as major resistance in MCX Crude oil February futures. For the next week, trader can go for sell on higher level strategy, if MCX Crude February future sustain below 6050 then it could test the levels 5940/5790.

Base Metal:

European Central Bank policy statement as well as US economic data on Thursday support the copper prices. Copper prices have been under heavy selling pressure in recent weeks as mounting concerns over the global economy dampened demand for growth-linked assets.

Trend of MCX Copper February future is in consolidation but some buying may be expected in it. For the coming week, it could face major resistance of 452/470 whereas 440/428 could be a major support in MCX Copper. For the next week trader may follow buy on lower levels strategy, if MCX Copper future sustain above 444 levels then it could

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