Reports for - 19th Dec to 23th Dec
GOLD ENDS UP, SETS BIGGEST WEEKLY DROP IN 3 MOS
A weakening dollar and short covering drove investors back into Gold on Friday, lifting prices to end a sharp four-session pullback that still yielded the biggest weekly decline in almost three months. Spot Gold rallied as much as 1.7 percent to $1,600.49 per ounce, and steadied at $1,596.40 up from a near 3-month low at 1,560.36 hit in the previous session. U.S. Gold rose 1.31 percent to close at $1,597.90 per ounce, after hitting a high at $1,598.10 per ounce. A slightly weaker dollar against a basket of currencies also helped boost precious metal prices. A softer U.S. currency makes dollar-priced commodities, such as Gold, more affordable for holders of other currencies. For the week, bullion lost around 6.60 percent, its biggest fall since late September. It remains vulnerable to a deepening euro zone debt crisis and rising funding stress. The need for cash has overwhelmed Gold's traditional tatus as a safe haven in the past few months, putting the metal on course for its first quarterly fall since end-September 2008 when the global credit crunch was at its worst. Gold has, therefore, benefited recently from developments that have reduced risk aversion and the flight to cash. It got a boost after Spain attracted solid demand for its bonds on Thursday, helping to ease concerns the country could be among the next to fall in the euro zone's debt crisis.
FUNDING STRESS
Gold benefits when central banks print money or cut interest rates or when money managers diversify assets. In other precious metals, spot silver gained as much as 2.68 percent to trade at $29.97 an ounce, before pulling back to $29.64 per ounce late in the session.
NYMEX-CRUDE FALLS ON EUROPE DEBT CRISIS WORRIES
U.S. Crude oil futures fell for a third straight day on Friday, dropping from early highs on worries about Europe's debt crisis and after the breach of a key technical support prompted further selling. A warning by credit rating agency Fitch that it may downgrade France and six other euro zone countries including Italy, Spain and Belgium due to a lack of comprehensive solution to the sovereign debt crisis helped fuel the day's selloff. Near midday, the front-month January contract broke - below its 300-day moving average of $93.20 per barrel, triggering more selling. Some late pre-weekend short-covering limited the day's losses. Implied volatility tumbled on a low-volume trading day, with the Chicago Board Options Exchange's Oil Volatility Index falling to 41.24 percent,
having opened at 44.10 percent, its high for the day.
FUNDAMENTALS
On the New York Mercantile Exchange, Crude for January delivery settled at $93.53, falling 34 cents, or 0.36 percent. It traded between $92.52, the lowest since Nov. 7, and $94.79. For the week, NYMEX front-month Crude fell $5.88, or 5.9 percent, the biggest loss for a week since the week to Sept. 23, when prices dropped $8.11, or 9.2 percent.
UPCOMING DATA/EVENTS
American Petroleum Institute weekly U.S. petroleum inventory data, 4:30 p.m. EST (2130 GMT) Tuesday.
COPPER ENDS UP ON SURPRISE U.S. DATA, TECHNICAL BUYS
Copper rose on Friday on a retreating dollar and firm U.S. economic data, but anxiety over the euro zone's sovereign debt woes threatens to curb the red metal's gains going into next week. Industrial metals have fallen this year as Europe's problems stunt economic growth, sap banks' lending for commodity trading and threaten to dampen demand for goods exported by emerging nations. A steadier tone in wider markets and a halt in the slide of the euro against the dollar was lending metals some support on Friday. A softer dollar makes commodities less expensive for holders of other currencies. Government data showed U.S. inflation pressure waning, fanning expectations the Federal Reserve could do more to boost economic growth. The latest consumer price report followed data on Thursday suggesting a possible pick-up in job growth, which has been meager during the current recovery. Three- month Copper on the London Metal Exchange closed at $7,345 a tonne, from $7,211 on Thursday's close. It extended gains in afterhours, to trade at $7,363.50 a tonne. The metal is down around 6 percent for the week, on track for its biggest weekly loss since the end of September and the first annual decline since 2008, when the global credit crunch was at its worst. In New York, the key March COMEX contract jumped 6.40 cents, or 1.96 percent, to close at $3.3310 per lb, posting its first increase of the week and its largest jump since Nov. 30.
It was up 2.31 percent in afterhours, trading at $3.3425 per lb. Opportunity buying following Copper's hammering on Wednesday, when it dropped 5 percent, also boosted the metal on Friday.
TURBULENT
Possible cuts in the credit ratings of euro zone countries are looming after a key European Union summit last week offered little respite to turbulent euro zone bond markets and cash-starved European banks. Price gains may be capped as production at mines resumes following labour disputes. Freeport McMoRan Copper & Gold Inc expects full operations at its Indonesia mine to start by early 2012 after reaching a pay deal on Wednesday to end a three-month strike that paralysed output at the worlds second-biggest Copper deposit. But warehouse inventories of Copper are rising. Copper inventories in warehouses monitored by the Shanghai Futures Exchange rose 9.4 percent from a week earlier, while stocks in warehouses monitored by the LME fell 825 tonnes to 381,250 tonnes, representing around a week's worth of global consumption.
Gold
Market Overview
COMEX Gold is in a technically consolidating on charts for short term. Last week COMEX Gold was trading on lower side and was able to made a close near 1600$ an ounce. In the coming week 1440$ will act as a major support in COMEX Gold and 1740$ will act as a major resistance.
For the next week traders can use buy on lower level strategy if COMEX Gold sustains above 1580 $ an ounce, then above 1610 $ it can test the level of 1630$/1645$/1670$ $ an ounce. And in MCX Gold above 27800 it can test the level of 28000/28200/28450. Trade by keeping the strict stop losses.
Strategy
Major support for COMEX Gold in the coming week is 1525$ and 1460$.
Major resistance for COMEX Gold in the coming week is 1710$ and 1790$
Major support in MCX Gold is 25500 and 24000
Major resistance in MCX Gold is 28700 and 29500
Silver
Market Overview
COMEX Silver is technically in upward phase. Last week COMEX Silver was sustained at lower levels and made a close below 3000$ an ounce. For the upcoming week 2800 $ and 2600$ are the crucial supports and 3400$ and 3600$ are crucial resistance in COMEX Silver. In MCX Silver 57000 and 59000 will act as major resistance and 51500 and 49500 will act as major supports.
Strategy
Technically COMEX Silver is consolidating on charts. For the next week traders can use buy on lower level strategy if Silver sustains above the level of 3000$ an ounce, then above 3150$ COMEX Silver can test the level of 3210/3250/3290$ an ounce. And in MCX Silver sustains above 54000 then it can test the level of 55100/55900/56700, Trade by keeping the proper stop losses.
Crude Oil
Market Overview
NYMEX Crude is in consolidation phase. Last week Crude Oil was down for most part of week and closed near to its week low. For the coming week 85$ and 80$ will act as major supports and 100$ and 105$ a barrel will be a major resistance in NYMEX Crude. In MCX Crude Oil major resistance is found at 5260 and 5400 and major supports will be 4680 and 4500.
Strategy
For the next week traders can use sell on higher level strategy, if NYMEX Crude sustains below the level of 93.5 $ a barrel then below the level of 92.5$ a barrel it can test the level of 90.80$/89.80$ a barrel and in MCX if Crude sustains below 4900 then below 4850 it can test the level of 4790/4720 in this week. Trade by keeping the proper stop loss.
Copper
Market Overview
Copper is in a consolidation phase and traders should use the strategy of sell on higher levels. Last week COMEX Copper was able to sustain at lower levels. If next week COMEX Copper sustains below the level of 325 then below the level of 321 Copper can test the level of 316/311/305. In MCX, Copper
sustains below 388 then it can test the level of 383/378/373 if it does not break the level of 402 on the upside.
For the upcoming week 355 and 375 will act as major resistance and 310 and 290 will act as major supports in COMEX Copper. For MCX Copper major resistance would be 410 and 430 and supports would be found at 370and 355.
Natural Gas
Market Review
Natural Gas is in a consolidation phase and traders should use the strategy of selling on higher levels. Last week Natural Gas was down for most part of the week and close near to its week low. If next week Natural Gas sustains below the level of 3.100 $ then below the level of 3.070 $ Natural Gas can test the level of 3.005$/2.940 $ and above 3.330$ Natural Gas can go up and test the level of 3.430/3.510 $. In MCX, if Natural Gas sustains below 163 in the coming week then it can test the level of 160/157/154, if it does not break the level of 170 on the upside.
For the upcoming week 2.750 $ and 2.450$ will act as major supports and 3.750$ and 4.100$ will act as major resistance in US Natural Gas. For MCX Natural Gas major resistance would be 195 and 205, supports would be found at 155 and 143.
