GOLD:
Gold trading range for the day is 31150-31976.
Gold settled flat on profit booking after gaining on news of ECB’s plans for a potentially unlimited bond-buying program
Holdings of gold-backed exchange-traded funds hit a record high of 72.1 million ounces, or 2,044 tonnes
ECB interest rates at 0.75% versus 0.50% expected and 0.75% prior
SILVER:
Silver trading range for the day is 61196-64002.
Silver gains but dropped from high’s as rupee shown firmness and snapped three-day losing streak boosted by corporate dollar sales
Silver extended gains even as the industrial metal remained firmly in overbought territory measured by RSI.
BOE keeps the interest rate at 0.50% and keeps the asset purchase target at 375B.
Silver is trading above 50DMA, which is at 56456, with intraday support seen at 61196 and resistance at 64002.
CRUDE:
Crude trading range for the day is 5250-5482.
Crude oil held on to strong gains after government report showed oil supplies fell significantly last week.
Crude oil inventories fell by 7.4mbls compared to expectations for a decline of 5.3mbls.
Market looked ahead on non-farm payrolls which will allow investors to gauge the strength of the labor market.
Crude is holding with a support at 5250 and resistance will be likely at 5482.
COPPER:
Copper trading range for the day is 429.3-441.1.
Copper dropped despite supportive news that the ECB will undertake an aggressive bond-buying program.
Copper paused to digest the news of the ECB’s program as well as the bank’s decision to keep interest rates on hold.
Copper also had a muted reaction to U.S. data that showed the claims for jobless benefits fell last week
Warehouse stock for Copper at LME was at 213225mt that is down by -1825mt.
ZINC:
Zinc trading range for the day is 104.03-106.83.
Zinc yesterday traded with the positive node as European Central Bank announced to keep interest rate unchanged at 0.75%
ECB chief Mario Draghi said the bank would introduce unlimited amounts of short-term debt buying program
ECB pushed new unlimited government bond purchasing plan, while US ADP’s data was much better than forecasts
Warehouse stock for Zinc at LME was at 945250mt that is down by -2800mt.
NICKLE:
Nickel trading range for the day is 883.9-922.
Nickel dropped but downside limited as data from the was better than expectation
Germany was objected to the ECB’s bond purchasing, increasing risks for bond buying.
ECB President Mario Draghi unveiled a new bond-buying program dubbed “Outright Monetary Transactions (OMTs)”
Warehouse stock for Nickel at LME was at 121152mt that is up by 1098mt.
NATURAL GAS:
Nat.Gas trading range for the day is 152.8-162.4.
Natural gas gains as a report from the EIA showed U.S. gas supplies rose less-than-expected last week.
EIA said in its report that natural gas storage in the U.S. in the week ended August 31 rose by 28 bcf.
Total U.S. natural gas storage stood at 3.402 trillion cubic feet as of last week.
Natural Gas is holding with a support at 152.8 and resistance will be likely at 162.4.
ALUMINIUM:
Aluminium trading range for the day is 107.8-111.2.
Aluminium dropped as investors confidence cooled after weakening possibility of policy easing by the Fed
Markets expect the US non-farm payrolls will continue to grow mildly since US economic figures came in better than anticipated
ECB interest rates at 0.75% versus 0.50% expected and 0.75% prior.
Warehouse stock for Aluminium at LME was at 4866400mt that is down by -8225mt.
REF SOYA OIL:
Ref soyaoil trading range for the day is 802.13-813.23.
Ref soyaoil dropped on some profit booking but downside was limited as good demand in spot market due supported prices
Overall demand is expected to pick up which will support the market sentiments in medium term.
Soybean production in 2012 is likely to be more than last year but heavy rainfall in central India remains a concern
At the Indore spot market soyoil edged up by 4.65 rupee to 802.65 rupees 10 kgs.
WHEAT:
Wheat trading range for the day is 1523-1569.
Wheat fell on expectations that the government could release additional wheat from its warehouses to ease shortages
India has decided to make available 1.3 million tonnes of additional wheat for open sale in September and October
Millers can now request supplies amounting to up to 1.3 million tonnes out of a total of 3 million tonnes agreed by ministers
In Delhi wheat prices gained 1.95 rupee to end at 1573.2 rupees per 10 kg.
JEERA:
Jeera trading range for the day is 13978-14654.
Jeera gained on short covering on hopes of exports may pick up, though higher production concerns limited uptrend.
The total arrivals remain unchanged at 4,000 bags, while demand was seen for around 5,000 bags.
NCDEX accredited warehouses jeera stocks dropped by 458 tonnes to 10625 tonnes.
In Unjha, a key spot market in Gujarat, jeera gained 53 rupees to end at 15138.7 rupees per 100 kg.
TURMERIC:
Turmeric trading range for the day is 5878-6318.
Turmeric gained on rising demand ahead of festive seasons along with lower sowing in the major producing regions.
Reports of stockiest holding onto stocks supported the rates at these levels however.
NCDEX accredited warehouses turmeric stocks dropped by 484 tonnes to 10253 tonnes.
In Nizamabad, a major spot market in AP, the price ended at 5588.75 rupees gained by 116.75 rupees.
TODAY’S COMMODITY ADVICE:
- BUY COPPER MCX NOV ABOVE 434 SL 432 TGT 436-438
- BUY SOYABEAN NCDEX OCT ABOVE 4010 SL 3980 TGT 4038-4060
- CRUDE OIL MCX SEP BELOW 5320 SL 5355 TGT 5295-5270