Leading Index and Commodity Trading Tips

MCX Commodity Gold and silver too expanded weakness yesterday where in Spot Gold fell around 1percentage. Additionally, we are seeing losses getting extended in early session today with Comex Gold opened over 1percentage loss after holiday. Weaker oil prices which makes a case for further subdued inflation is hitting the Bullion complex most whereas EU economic data today on YoY CPI is also seen impacting further weakness in the commodity today. Asian equities are largely positive today and USDX adding marginally would put negative pressure on Gold in intraday. While no other major developments are due today as we lack any major data from US, movement may be constricted and thus recommend selling the yellow metal for small targets today. Bullion markets at Comex were shut yesterday with the commodity only trading for a limited time at electronic session. Though Spot Bullion wherein both gold and silver fell and the same aspect reflected in Indian markets at MCX Indian MCX Gold for Feb settlement finished lower by0.6percentage to Rs 26630 per 10 gms

Global Market View: Asian markets are trading on a mixed to moderately positive note this morning while US markets remained closed for Thanksgiving on Thursday. The release of the statement from OPEC in which they have not announced any cut in production triggered a steep fall in the oil price whereas effect was visible on some other non-agri commodities as well. In terms of currency, Asian currencies are trading on a negative note with respect to the dollar. US dollar index has respected in a low quantity trading session the recent past. US dollar index has pulled itself above the 88 height and is currently balanced at 88.15 levels.

Economic data from the UK, German and EU economies would have a considerable impact in their respective currencies in today’s session, though no major data is due from the US. We also have Indian GDP and fiscal deficit to be released today which may make INR volatile and thus impact trading in some MCX commodities.

We should see lower opening for silver commodity today as MCX follows extended losses in US markets as of Asian electronic opening. Though markets lack momentum today, bias continues to be weak as in the case with oil. Onto the Ratio front, we expected moderate positivity over base metal could support its outperformance over gold however the same went wrong for last two days. Advice traders avoiding fresh positions in Ratio and better to wait for weekly closing to take call. Silver too depicted a similar move though as of opening rate today, we are seeing losses getting wider for the high beta commodity which has moved lower by around 3percentage to$16 per ounce mark Silver March MCX finished with a near 2percentage loss yesterday following international spot and closed at Rs 36700 per Kg.

Commodity Trading Tips

Sell Gold Feb Mcx below 26650 SL 26780 Tgt 26550

Sell Silver Mar Mcx below 36600 SL 37000 Tgt 36100