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
Technically Zinc market is under fresh buying as market has witnessed gain in open interest by 7.03% to settled at 6276 while prices up 0.4 rupees.
Now MCX Zinc is getting support at 194.9 and below same could see a test of 191.4 level, And resistance is now likely to be seen at 200.3, a move above could see prices testing 202.2.
Zinc on MCX settled up 0.2% at 198.35 recovered from the day’s low as support seen after the report that production cutbacks at China’s zinc smelters due to tighter environmental checks and weaker profits had tightened supply.
Traders or smelters are also reluctant to deliver the metal to ShFE warehouses. They prefer to sell the metal on the physical market at higher prices, citing premiums of around 100-500 yuan per tonne over ShFE zinc cash prices in the physical market.
Yesterday Three-month zinc on the London Metal Exchange rose 0.6 percent to $2,629.50 a tonne. Meanwhile concerns about economic and demand growth in China were fuelled by the country’s central bank slashing the level of cash that banks must hold as reserves, stepping up moves to lower financing costs and spur growth.
Beijing has stepped up liquidity support across the financial system this year to calm fears of capital outflows and the damage to China’s economy from a trade war with the United States.
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.
Trading Ideas:
–Zinc trading range for the day is 191.4-202.2.
–Zinc prices recovered on short covering after prices seen pressure given sufficient ore supplies and tight refined material supplies.
–The US Commerce Department said that the trade gap increased 6.4% to $53.2 billion, widening for a third straight month.
–German industrial output unexpectedly dipped in August for the third consecutive month, data showed.
Courtesy: Kedia Commodities
Source: Commodityonline.com
