Outlook on Commodities: Gold prices to stay range bound

May 10 2014, 15:27 IST
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Over all, MCX Gold June future is in consolidation and sustaining around lower levels. (PTI) Over all, MCX Gold June future is in consolidation and sustaining around lower levels. (PTI)
SummaryGold prices remained flat in Indian as well as International market as poor demand from Asian economies and easing fear in Ukraine kept the prices in range.

can use sell on higher level strategy, if MCX Crude May future sustain below 6000 levels then it could test the levels 5930/5800.

Base Metal: Copper prices moved up nearly a percent on Thursday as positive CPI data from China and positivity in Nickel prices helped pushing other base metals higher. China's consumer prices rose 1.8 percent in April from a year earlier while producer prices fell 2.0 percent. Federal Reserve Chair Janet Yellen said that a high degree of monetary accommodation remains warranted given the slack in the economy. Yellen also said the Fed expects economic growth to accelerate this year despite the slowdown in the first quarter but warned that the recent housing market slowdown "could prove more protracted than currently expected." We expect Copper prices to remain in range for the week over stronger dollar and worries over China.

Trend of MCX Copper June future is in consolidation and also sustaining in range. For the coming week, it could face major resistance of 428/440 whereas 400/389 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 413.70 levels then it could test the level of 420/428.

By Vivek Gupta, Director Research, CapitalVia Global Research Limited

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