PPI Final Demand MoM and Commodity Trading Tips

Mcx Bullion Trading market as we are seeing no major change in any way Bullion prices are trading with early morning cues too stable. This morning gold Comex at electronic session is hovering near the $1186 mark. Markets are trading range bound and possibly looking for some sort of critical triggers to move either side. We have the regular data coming today so likely that markets would remain in the same zone. Regarding the direction and trend is concerned; the bearish trend is not over yet though as said in our weekly report, Fed Minutes outcome late night tomorrow would be closely watched. While commodity bias remaining on sell side, those holding shorts or like to initiate fresh shorts are advised to place stop loss above $1200 for gold while accordingly maintain SL in MCX platform too.

Gold imports zoomed 280% to $4.17 Bln in Oct widening the trade deficit. Higher demand could be due to lower prices and festival season though it didn’t had any major impact on pricing of international gold. Also, there are reports that officials from BI and Finance Ministry met last week to review our gold import policy. In case we see some fresh curbs over imports, probably local Gold spot premium would once again increase in near-term while similar impact can be seen on MCX near month Gold. Gold had a very shallow movement yesterday with the commodity trading in a small $10 per ounce range for whole day before shutting shop at $1183 an ounce, lower by 0.2% on Monday. In India, Gold MCX December contract settled with a marginally higher loss of 0.5% to Rs 26330 per 10 Gms.

Gold and silver are both trading in a consolidation phase and likely that broad movement might continue in the same manner for a day or two. We have some important data variables from EU region today whereas in the US PPI number would be closely watched. While ZEW could see mercurial movement, we are not very optimistic over US PPI as industrial commodities have remained subdued lately. On that note, we also feel silver could be a better bet to sell today as equated to gold.

Silver commodity followed a near similar trajectory on Monday as with gold though its high beta helped traders manage decent money out of sell strategy Silver Comex Dec finished 1.6% lower to $16.05 an ounce whereas Silver Dec MCX fell 1.1% to Rs 35630 per Kg

Commodity Trading Tips

Sell Silver Mcx Dec below 36530 SL 37250 TP 35800

Buy Nickel Mcx Nov above 965 SL 954 TP 985

Sell Crude Mcx Nov below 4645 SL 4675 TP 4585