Gold 29370 /Silver 39012 / Crude Oil 3347 / Copper 303.50
Top Gainers
Crude Oil – Gains 1.27% CMP 3347.00
Natural Gas – Gains 1.04% CMP 165.40
Top Looser
Copper – Losses 3.25% CMP 303.40
Lead - Losses 2.32% CMP 133.65
Gold tumbled today as heavy gains in last few sessions’ triggered profit selling amid supportive equities. Stocks surged in Europe on strong economic cues and COMEX Gold extended a drop after hitting its two week high above $1250 per ounce levels yesterday. The metal currently trades at $1247.85 per ounce, down 0.04% on the day. MCX Gold Aug futures are trading at Rs 29370 per 10 grams, down 0.25% on the day.
COMEX Gold jumped from lows near $1200 per ounce last week as a weak nonfarm payroll report weakened the US dollar and commodities traded on a sound footing. COMEX Gold had surged nearly 3% after an extremely weak US nonfarm payrolls data that ensured that a summer rate hike talks are no longer a major play for the markets. The US added just 38000 new jobs in May and hiring in the prior two months was also weaker than originally reported.
Copper futures slid lower on Tuesday, with both MCX and COMEX copper futures slipping from four-week highs, even as the US dollar continued to show weakness in the aftermath of last Friday's jobs report.
The health of the labour market one of the key economic conditions that the Fed will base its rate hike decisions on, the bad jobs report oppose expectations for a June rate hike. This pressured the US currency, and sparked a big rally in dollar-denominated commodities.
Meanwhile, MCX Copper is showing sharp selloff. The prices of Copper depleted to Rs 302.75 per kg, down 3.22%. The prices tested a high of Rs 313.65 per kg and a low of Rs 302.75 per kg.
Chana prices on the NCDEX hit a new high on Tuesday with the near month June contract touching ₹6,595 a quintal from ₹6,250 recorded on Friday. In fact, chana prices have been rising for the last few days on the back of lower supply and firm demand in the spot market. This apart, the government decision to hike the minimum support price for kharif pulses has led to expectations that chana, a rabi crop, would receive the same benefits. Import price of chana has also been rising steadily with the landed cost hitting ₹57 a kg against ₹50 in May. In the last four months, import prices have gone up by ₹2,000 a quintal. The demand for chana has remained strong over the last few days with Ramzan started on Monday followed by Hindu festivals. Most importers have cut shipments on fear of the Centre imposing stock limits to bring down prices.
Our Recommendations...
We recommended to Sell Gold around 29300—29320. Booked part profit around 29220—29200.
We also recommended to Sell Silver below 38950 with stop loss at 39350, we asked to book part profit around 38750.
On Base metal side..
We recommended selling in Lead below 115.50, it crashed vertically made low 113.35.
Not only this ... On NCDEX
We recommended to buy Jeera (July) around 16600 with stop loss of 15800, it flared like anything and made high of 16915.
Now what to expect today?
Technical Levels.
Gold
Support at 29150---29080 and resistance at 29450.
Break and sustain + close below 29150 will take to 29080 and then to 28940---28850 mark else it could test its resistance level of 29450 again
Further upside rally will see only close above 29450 mark
Traders can trade with levels only,
Silver
Support at 38700 and Resistance at 39200
Break and sustain below 38700 will take to 38500---38300 again. Else could test its support level of 39200. Further upside rally will see only close above 39200 mark
Crude Oil
We have seen consolidation phase in Crude from past two weeks,
Support at 3250 and resistance at 3380—3450
Close below 3250 will take it to 3150—3120 else could test its resistance level of 3380—3450, further upside rally can be seen if closes 3450 marks.
Trade with levels only.
Copper
Support at 300 and Resistance at 315---318.
Copper... Unable to breach its resistance level of 318 and crashed vertically to 302.75 mark. Below 308... Panic remain continue,
Two consecutive closes below 300 will take to 294---289 mark.
Traders with levels only
Soyabean
Support at 3800 and resistance at 3920
Two consecutive close below 3800 will take it to 3700—3650 marks else could test its resistance level of 3920.
Further upside rally can be seen if closes above 3920.
Major Economic Date to be Released Today
UK Manufacturing Production m/m - 02: 00 P.M
Canadian Building Permits – 06:00 PM
US Jolts Jobs Opening m/m – 07:00 PM
Crude Oil Inventories - 08:00 PM
Technical Pick of the day
Sell CPO June below 526, Stop Loss 531
More will be update during market hours. So keep following our blog and Android App!!
