MCX Gold under short covering; Support seen at 33268
MCX Silver under short covering; Support seen at 39886
Short covering seen in MCX Crude Oil
MCX Copper likely to move in a range of 456.7-465.3
MCX Zinc may trade between 188.7-201.3 levels
Now MCX Natural Gas is getting support at 198.7 and below same could see a test of 197.1 level, And resistance is now likely to be seen at 202.8, a move above could see prices testing 205.3.
Natural Gas on MCX settled up 1.06% at 200.40 edged higher but had trouble moving above former support now resistance, despite a forecast of colder than normal weather. According to the National Oceanic Atmospheric Administration, the weather is expected to be colder than normal for the next 6-10 and 8-14 days.
The cold weather will drive up heating demand and put downward pressure on inventories. Inventories remain near the lower end of the 5-year range but prices remain at the lower end of the 5-year average range.
Supplies continued to increase which is not helpful to prices, and demand fell in the prior week as warm weather covered most of the East coast. According to data from the EIA, the average total supply of natural gas rose by 1% compared with the previous report week.
Dry natural gas production grew by 1%, primarily from increases in the Northeast. Average net imports from Canada increased by 2% as import volumes rose into both the western United States and the Midwest.
Total U.S. consumption of natural gas fell by 2% compared with the previous report week, according to data from the EIA. Natural gas consumed for power generation declined by 4% week over week. Industrial sector consumption decreased by 1% week over week.
–Natural Gas trading range for the day is 197.1-205.3.
–Natural Gas markets continue to grind as market see a bit of a recovery in a very beat down market.
–The current cold spell currently hitting many states in US is also driving up spot gas prices.
–Returning polar air sends prices higher while pullback in demand in latest weather outlooks.
Courtesy: Kedia Commodities