Initial Jobless Claims and Commodity Trading

 

Gold Commodity Intraday trading has no major changes in Bullion fundamentals as markets continue to wait for fresh triggers in a week which lacks any major economic cues. We feel there is a possibility of good move in next two days as there are few economic readings from the US and also a number of US FED Managers are going to speak at different events. Hopes of earlier than estimated rise in interest rates is one of the major reasons behind continued weakness in Gold lately. While, we look at the volume and open interests along with price performance both the variables are supportive of the bearish trend so we recommend selling from higher levels. ThoughSPDR ETF holdings rose by 3MT yesterday, they largely remain unsupportive. We recommend selling from higher levels today.

Global Market View: Major global equity markets ended last day with a minute change while Asian markets are trading slightly positive today. Therefore, we may see the local unit opening higher against the USD while we believe during the day it may again depreciate a tad. From the global currency front, markets are more or less stable. The USD index is trading at 84.24, euro is at $1.2915and the pound sterling is at $1.6198.Now, we move on to commodities, both gold and silver which fell again last day are seen trading steady at $1249 and$18.96. The Oil is trading at $91.75 and the base metals are trading steady from the previous day’s close.

Gold extended another day of range bound trade in the international markets though bias remained weaker both at the Commodity and MCX. Gold Commodity Dec contract fell 0.25percentage to $1245 an ounce whereas at MCX, October expiry metal fell 0.3percentage to Rs 27180 per 10 Gms.

Economic data: German CPI at 11: 30 AM IST, US Weekly Jobless Claims numbers at 6 PM IST and the Monthly budget statement.

Silver Commodity trading has no major changes in silver commodity as also been the case with gold as stated above. We continue to hold a bearish bias in the two metals. Re-iterating our yesterday’s view silver is managing better performance than gold in last two-three days which is not significant though makes us cautious as either there is some internal positivity which is not updated in markets or otherwise we should see strong sell-off in the commodity sooner. We hold sell stance in Intra-day whereas continue to be on the sidelines on our view over Ratio.

Silver was no different in terms of intraday performance yesterday though the whitish metal continue to manage tads better performance as compared to gold, as been the case during most of this week. Commodity December Silver closed unchanged yesterday at $18.92 an ounce whereas Indian Silver for same month’s settlement too closed flat to Rs 41950 per Kg.

Commodity Trading Tips

Sell Silver mcx Dec below 42070 SL  41300 Tgt 41700

Sell Gold mcx Oct below 27280 SL  27370 Tgt – 27100