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 Zinc under Fresh buying; Support seen at 194.9
Technically Copper market is getting support at 452.6 and below same could see a test of 449 level, And resistance is now likely to be seen at 458.9, a move above could see prices testing 461.6.
Copper on MCX settled down 0.1% at 456.10 traded in the range as signals are mixed for LME copper, as it is not very clear if a support at $6,145 could hold. Although the Chinese market has reopened after the Golden Week holiday, volume has remained light with 3,361 lots traded as of 6:50am London time.
The fact London Metals Week has followed Golden Week has kept the market volume thin. Copper firmed a touch to $6,178.5 a tonne as support seen after sliding stocks of copper on the LME market are also a cause for concern.
At 181,975 tonnes, they have more than halved since late March, while cancelled warrants have climbed above 50 percent. Also the higher U.S. currency was weighing on industrial metal prices generally, as it makes dollar-priced commodities more expensive for holders of other currencies, potentially subduing demand.
Related Post
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.
Rome is required to submit a draft budget to the commission, which will examine if it remains in line with EU rules, by October 15. Market participants should also monitor comments from Federal Reserve Bank of New York President John Williams.
Trading Ideas:
–Copper trading range for the day is 449-461.6.
–Copper prices dropped getting pressure from a strong US dollar and firm US economy.
–The recent US-Mexico-Canada Agreement will also put China’s exports under pressure.
–The US trade deficit increased to a six-month high in August as exports dropped further.
Courtesy: Kedia Commodities
Source: Commodityonline.com
