US Building Permits and Commodity Market Tips

Mcx Commodity Trading In bullion are seeing fresh decline of over 1percentage in Gold commodity though locally may not see such huge fall as Rupee has depreciated afresh in early morning session. We believe, Bullion are losing weight before the Fed’s two-day policy meeting to assess the timing of interest-rate increases amid slumping energy prices and signs of an improving economy. In to the international markets, if the Comex gold falls below $1188, then locally we might see a huge drop. Hence, we suggest selling the precious metal from higher levels at the local market while globally slight upticks would make a fresh selling opportunity in the bullion complex today. bullion sector at the global market declined heavily yesterday with the appreciation in the USD and cautiousness ahead of the US Fed meeting later during the week also pushing the commodity lower Gold Comex Feb expiry contract fell around 1.2percentageyesterday to $1207 per ounce whereas locally, Rupee depreciation and heavy inflows in terms of imports aided some support to MCX Gold which added 0.4percentage to Rs 27320.However, NCDEX Gold Hedge which takes direct clues from Comex and Rupee settled moderately lower. Spread between the two increased & likely that same may see some more increase in near-term.

Global Market View: Troubled by the falling oil prices, equity markets continued to slide in yesterday’s trade as well. S&P 500 closed at 1989.63 down by 0.63percentage.In terms of currency, Asian currencies are trading on a mixed to negative note with respect to the dollar. US dollar has remained largely range bound yesterday wherein index stood at 88.42. Japanese Yen managed to appreciate as investors seek safe assets in times of uncertainty. Yen is currently trading at 117.76. Euro is trading at 1.2446 with no major change. Locally, we seen trade deficit widened to$16.86B due to a high increase in gold imports last month. One positive note, exports have increased by 7.27percentage.

Overall we maintain selling stance in the commodity for intraday wherein the big sell-off yesterday is also hurting our weekly bias for the metal. We had expected Silver to perform better than Gold as mixed base metals and heavy weakness expected in yellow metal due to Dollar, FED meeting and subdued Chinese demand was not seen impacting silver much. However, single session sell-off has turned the trend on the other side wherein which now we remain sell in Silver while recommend exiting Gold/Silver Ratio selling call which we gave on Friday with loss Silver too fell heavily yesterday closing lower by around3percentage to $16.55 per ounce at Comex whereas Spot markets saw a further extended fall in late night session in the US and the same is getting reflected in early morning trade in Comex today morning as Silver loses over 2.5percentage.Silver locally saw a decline in the range of 1percentage to Rs 38315per Kg mark with Rupee coming to the rescue.

Commodity Market Tips

Sell Silver Mar Mcx below 38400 SL 38900 Tgt 38000

Sell Copper Feb Mcx below 413 SL 417 Tgt  406