Mcx Gold commodity trading saw subdued market yesterday while we expect a soft session in today’s session as well. Rather than talking about individual performance, we feel we would better talk about group where possibly gold may continue to outperform silver on the positive side. As per the day’s view is concerned, $1250 maintains as a key a key resistance. In case the commodity is unable to mark any positive move above $1250, probably the preceding bearish trend may continue in the next week too. We have a ranged view in gold today. US housing data and mainly UoM consumer confidence data would be watched closely for Gold commodity today evening. Gold was little changed yesterday after marking decent gains the previous day, as traders awaited fresh triggers on economic or currency side. Comex Gold Dec closed lower by 0.3percentage to $1241 an ounce while traded in a bend $1235 to $1245 for the day. MCX Gold for Dec contract however advanced 0.7percentage to Rs 27450 per 10 Gms as we also adjusted with the changes on Wednesday when domestic markets were shut.
Global Markets continued to reel under pressure with high volatility across the globe. Asian markets are all trading deep in the red today. S&P 500 closed flat after a volatile session recouping most of the losses from early trade. SGX Nifty is trading on a positive note up by 50.00 points indicating a marginally positive opening for today’s session. US Dollar index had a subdued session yesterday as compared to the last few days and is currently trading at 84.93. Euro and Pound are trading at 1.2803 and 1.6086 respectively, appreciating marginally in yesterday’s session.
We maintain a near similar outlook as with the case with gold though feel modest set of bearishness could be seen supported by negative trend in the industrial metals complex. So, finally we could either sell silver today or recommend a ratio trade where in gold should be a buy. We have the Indian rupee which has appreciated a tad this morning so possibly losses may be more in the local market. Silver too traded in a ranged manner wherein the commodity finally shut shop lower by 0.15percentage to $17.44. MCX Silver Dec on the other side added 0.3percentage yesterday adjusting with movement in Rupee and International markets on Wednesday
Crude commodity trading stocks as reported by the DoE rose by 8.92 million barrels to 370.6 million for the week ended Oct 10, as imports increased where oil output in the US continued to rise. US refinery utilization rate fell by 1.2percentage to 88.1percentage marking a further lower performance for the overall inventory and one of the major reasons behind good rise in crude stocks. In products, gasoline stocks tumbled 4 million barrels with consumption of the motor fuel rising by 1percentage to 8.78 MBPD during the past four weeks, probably prompted by largely lower prices for US gasoline. Distillate stocks too fell however largely the inventory numbers continued to portray negativism. However, when US inventory data came so much negative one of the major reasons behind yesterday’s advance could be linked to strong gains in Dec month Brent and also prices moving lower to sharply lower to oversold phase. Note that overall trend has been straight bearish especially the OPEC countries are still held off from making any supply cut. Overall our bearish stance would remain wherein on a technical aspect; we are revising our medium-term targets from $83 to $77. On that regard, yesterday’s recovery in the prices is good to take fresh short positions. This morning, oil is seen trading at $83.09 up by 0.48percentage wherein we recommend selling from higher levels.
Global Markets continued to reel under pressure in highly volatile sessions across the globe. Asian markets are all trading deep in the red in today’s session. S&P 500 closed flat after a volatile session recouping most of the losses from early trade. SGX Nifty is trading on a positive note up by 50.00 points indicating a marginally positive opening for today’s session. US Dollar index had a subdued session yesterday as compared to the last few days and is currently trading at 84.93. Euro and Pound are trading at 1.2803 and 1.6086 respectively, appreciating marginally in yesterday’s session.
Economic data: No major economic data to be released today. Housing data from the US markets in the evening are expected to improve, and if they do could support the markets in the evening session.
Commodity Intraday Trading Tips
Sell Silver Mcx Dec below 38650 SL 39050 Tgt 39350
Sell Copper Mcx Nov below 410.50 SL 413 Tgt 405