MCX Gold under long liquidation
MCX Silver may move in a range of 37959-39349
MCX Crude Oil under long liquidation; Support seen at 5441
MCX Natural Gas under fresh buying; Resistance seen at 246.3
MCX Copper may move in a range of 449-461.6
TechnicallyMCX Nickel is getting support at 925.6 and below same could see a test of 914.4 level, And resistance is now likely to be seen at 943.4, a move above could see prices testing 950.
Nickel on MCX settled down 0.37% at 936.70 while prices recovered from the day’s low as LME nickel received support after falling to a low of $12,400/mt when the US dollar inched down. Inventories across LME warehouses declined 1,326 mt to 226,476 mt.
The SHFE contract broke resistance at the 105,000 yuan/mt level but limited upward momentum is seen as both supply and demand grow domestically. Last night the US dollar retained its recent gains overnight on upbeat domestic economic data and safe-haven demand with geopolitical concerns.
The euro fell to a seven-week low against the dollar on Monday as Italy and the European Commission headed for a clash about Rome’s budget plan. Brussels has expressed concern about Rome’s budget plan because it would exacerbate the nation’s budget deficit more than expected, for the next three years.
Meanwhile China’s services sector in September grew at its fastest in three months as demand picked up, showed the latest Caixin business report released on Monday. Growth occurred even as sentiment worsened as firms started cutting jobs following two years of expansion while rising cost pressures squeezed profit margins.
The Caixin services PMI rose to 53.1 in September from 51.5 in August, and has remained above 50, a level that separates growth from contraction.
Now day ahead some data to monitor today include China’s total social financing (TSF) and M2 money supply in September and Germany’s trade balance in August. Market participants should also monitor comments from Federal Reserve Bank of New York President John Williams.
Trading Ideas:
–Nickel trading range for the day is 914.4-950.
–Nickel prices dropped as pressure seen amid concerns about economic and demand growth in China.
–Stocks across LME inventories continued to decline but on a smaller scale.
–Global demand for nickel is expected to increase to 2.42 million tonnes in 2019 versus a projection of 2.35 million in 2018.
Courtesy: Kedia Commodities
Source: Commodityonline.com
