Markets: Eerie calm

Markets: Eerie calm

it is not clear when market sentiment can change; as in the past, it can be quite sudden.
At a turn and yet not

At a turn and yet not

RBI could be tempted to cut policy rate to support growth at its bi-monthly review.

Commodity market outlook: Gold prices are expected to move in a range

May 03 2014, 16:30 IST
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 A decline today would be the fifth straight loss, and the longest slump since April 1. Reuters A decline today would be the fifth straight loss, and the longest slump since April 1. Reuters
SummaryGold prices fell after U.S. employers boosted payrolls in April by the most in two years.

Precious metal: Gold prices fell after U.S. employers boosted payrolls in April by the most in two years, cutting demand for the metal as a haven. A decline today would be the fifth straight loss, and the longest slump since April 1. The Federal Reserve reduced monthly asset buying to $45 billion on April 30 with the fourth straight $10 billion cut, and policy makers said further reductions in “measured steps” are likely. Gold prices are expected to move in a range to down for the week over poor physical demand internationally.

Over all, MCX Gold June future is in consolidation and sustaining around lower levels. For the coming week 27700/27000 will act as a major support whereas 28500/29100 will act as a major resistance level in MCX Gold June future. For the next week in MCX Gold, trader can use sell on higher level strategy, if MCX Gold June future sustains below the levels of 28282 then it could test the levels 28050/27800.

Technically, MCX Silver July futures is in consolidation and sustaining around lower levels. For the coming week 42800/44500 will act as major resistance levels where as 38900/36500 will act as major support in MCX Silver July futures. For the next week in MCX Silver futures, traders can use sell on higher level strategy, if MCX Silver July futures sustains below 41500 then it could test the levels of 40200/ 38900.

Energy: Crude oil futures were steady during early European trading hours on Friday, hovering close to six-week lows as markets were jittery ahead of the release of U.S. nonfarm payrolls data later in the day. Futures were likely to find support at $98.10 a barrel, the low from April 23 and resistance at $100.59 a barrel, the high from April 30. Investors were looking ahead to the upcoming April nonfarm payrolls report, which was expected to show that the recovery in the labour market was continuing.

For the coming week 5850/5600 will act as major supports levels whereas 6200/6500 will act as major resistance in MCX Crude oil May futures. For the next week, trader can use buy on lower level strategy, if MCX Crude May future sustain above 6050 levels then it could test the levels 6150/6300.

Base Metal: Copper prices fell to a two-week low, following the release of disappointing data on China’s manufacturing sector and after Federal Reserve decided to taper

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