Mcx Commodity Trading Market for Bullion is cracking down on Monday morning with both gold and silver are down by 2 and 4percentage respectively. However, the Indian rupee is also expected to weaken against the USD which might limit losses marginally in Indian markets at opening. Strategy: Those who are holding any carry forward short positions required to book at the opening and then wait for a pullback and sell again. In the early morning during the Asian markets since at opening rate itself broader markets are already down, it is imperative to trade on pullback during the early European session. We overall suggest sell from higher levels. We have loads of economic data today evening and likely that volatility may increases traders is advised to maintain proper risk-reward ratio.
Global Market View: Let us start the week with appositive note but mind you the whole commodity sector is negative this morning. Price performance: Gold and silver down by 2 and 4 per cent respectively. Base metals are closet down by 1 per cent while the oil has extended fall .Gold during the last week moved lower by around 2percentage to$1175 per ounce at Comex wherein almost all of losses coming into the commodity on the last day of the week. Prices fell around the same rate in India with losses last week standing at 2.25percentage to Rs 26170 per 10 Grams for active February expiry.
Economic data releasing today: There would be host of manufacturing data released today. We have had the Chinese numbers already this morning. Later, India’s HSBC manufacturing data @ 10:30 IST, Euro-zone manufacturing at2:30 PM IST, US ISM manufacturing index @08:30 PM IST and Halifax house price index
As said above, Silver Comex at electronic session is trading down by over 4percentage today morning wherein at one point of time, it was even weaker by 5.5percentage. Swiss vote against increasing asset based investment for Gold in its Forex reserves and subdued Chinese data is prompting huge losses in silver. Overall trend stays down, we recommend selling the commodity only on pullbacks as it has moved into oversold phase with big loss in morning session itself. EU and US PMI number watched later today. As the yellow metal slid, Silver was not far behind wherein the high beat nature of the commodity pushed it even lower during past week. As of Friday closing numbers suggest Silver Comex for active March expiry closed down by 5.5percentage to $15.50 per ounce while Indian MCX Silver for same month’s settlement was weaker by 4.5percentage to Rs 35360 per Kg.
Sell Copper Feb Mcx below 397 SL 400 TP 393
Sell Silver Mcx Mar below 34500 SL 35000 TP 34000