US Trade Balance and Commodity Trading Tips

Mcx Commodity Trading for the Bullion complex as a whole, gold and as said above remained in the same range that we have been witnessing since Tuesday this week. This morning we are see in gold commodity adding further losses to the tune of 0.4percentage to near1203 per ounce. We believe today would be the day where good amount of movement could be noticed led by the US Non-Farm and Employment data. While the expectations for Payrolls stand higher towards 225-230K, ADP number for private payrolls disappointed and thus there is a modest chance for weak reading in today’s number as well. We feel, any reading over 220K would be taken positively for the economy and that may continue to add weight on Bullion. We advice selling with strict SL above $1222 today.

Mcx Commodity Trading for the Silver probably performer better than gold aided by the smart up move in Base metals complex in latter half of the day. However, overall movement in this commodity too has been following a similar ranged pattern. After good near 1percentage gains by closing yesterday, today morning Silver electronic session Comex is trading with a loss of 1.15percentage to $16.40 per once and likely that pressure on the commodity may continue for larger part of the day. Onto the Ratio, today probably we may get a break-out or break down after continued consolidation over past few sessions. We advice caution on Ratio while naked selling in silver with strict Stoploss.

Global Market View for Bullion: The US markets posted a negative close with the data disappointing the economy so this morning Asian markets are trading mostly steady to marginally down. From the global FX front, euro after the ECB meeting rebounded from $1.2300 to currently trading at$1.2380, the cable remained steady while the Japanese Yen moved down to hit 120.

Mcx Commodity Trading for Crude oil markets were under pressure once again as deal was reached between Iraq-Kurd to add around300,000 BPD worth of oil. Separately, on Thursday evening we saw news from Saudi wherein its state run oil company commented it offer the deepest discounts for its benchmark crude to Asian buyers. It said it had lowered the official selling price for Arab Light to Asia next month by an additional of a discount of $2 against the regional benchmark. This is the biggest discount from the major supplier as compared to the data compiled by Bloomberg since June2000. It is now seen that Saudi would also cut prices for all grades sold to the US for Jan month. Onto the other major event, the EC kept rate unchanged though it added, its Governing Council is expecting to consider a package of broad-based asset purchases including sovereign debt next month. The comments were part of the two EU central-bank officials and as reported by Bloomberg. However, the development could not create any major effect on commodities, while Euro recovered some of its losses made over last few days. For the commodity, we had maintained a selling stance in the commodity yesterday, we expected only a moderate set of movement and the news from largely producer in OPEC changed the game completely. For the day, we feel broader trend continues to be the same though we have monthly Employment numbers from the US in evening session which needs to be watched. Selling on small pullbacks advised for the commodity today

Global Market View for Crude: The US markets posted a negative close with the data disappointing the economy so this morning Asian markets are trading mostly steady to marginally down. From the global FX front, euro after the ECB meeting rebounded from $1.2300 to currently trading at $1.2380, the cable remained steady while the Japanese Yen moved down to hit 120.

Commodity Trading Tips

Sell Crude Dec Mcx below 4150 SL 4250 Tgt 4050