Bullion Rolls Euro PPI Number and How Commodity Advisory Services Helps

Gold prices traded in a ranged manner for larger part of session. While Spot market prices remained stable even during the US session, we saw that huge mercurial trade in the futures markets. Overall we maintain our moderate bullish bias into the commodity in the short-term with the prices taking further support out of the mixed to weaker US and European equity indices globally.

In the Indian context, we have seen heavy movement as per as the calendar spread market is concerned yesterday. The spread between the February and April month contract suddenly slipped to near Rs 575 from over Rs 700 per 10/Gms last week. We had earlier recommend buying the spread and booked partial profits near Rs 750 levels. With the speculation in local markets increasing regarding tax ease by the GoI and also rising April month futures over near month has led towards reduction in backwardation. We advice traders to close the open positions in the spread near cost, if any. Our buying level was around Rs 450-500. Overall, we have a bullish view into the commodity for small targets in Intra-day

Silver prices at the electronic Globex platform are marginally higher at $20.16 up by 0.31%. Therefore, we might see Indian silver future contract prices may open higher while further gains could be noticed supported by weak domestic unit. As the day progresses, we believe silver commodity may remain sideways and volatility could be less. Looking at the economic data, we have CPI, PPI and retail sales data from UK, Germany and euro-zone.

However, these data might provide slight movement in the prices. Later during the day we do not have any economic data from the US so possibly prices may either remain subdued or speculators might drive the day. Overall it might trade in the range bound territory and as discussed Rs. 45000 continues to be a strong support for MCX silver. We recommend buying silver for small Targets.

Crude Oil today late night, the private major API would publish its weekly inventory report which would be watched closely by markets participants’ tomorrow morning. While the data is anticipated to be mixed, we feel the cold temperature in the US is driving oil marginally higher today morning. However, we believe the other discussed fundamentals may continue to weigh on prices so we continue to hold a bearish view. Traders can look for selling during the afternoon session whereas can buy on dips during the evening trade for small profits

Commodity Advisory Services Tips

BUY CRUDE OIL MCX JAN ABOVE 5072 SL 5852 TGT 5888-5907

BUY NATURAL GAS MCX JAN 271.50 SL 268 TGT 275.50

COMMODITY MARKET EVENTS FOR DAY TRADING: