Wednesday, April 20, 2016
Market Overview
Gold prices are correcting slightly but silver
continues to outperform gold. U.S Q1 GDP
forecasts are now near 0.2% implying the
Fed will wait longer before it raises rates.
This will continue to underpin precious
metals in the short to medium term
Base metals trade mixed today as a
weaker dollar supported prices. Weaker
U.S. housing data may however cap some
of the gains today. The global zinc market
saw a larger surplus of 48,400 tonnes in
February compared with a surplus of
17,400 tonnes in January
Crude oil prices continue to trade lower as
the workers strike in Kuwait ended and US
API inventories rose more than forecast.
EIA data later today will provide further
cues.
Time
Economic Release
Country
Exp.
Prior
7:30 PM
8:00 PM
Existing Home Sales
(MoM)
Crude Oil
Inventories
US
US
3.5%
2.40M
-7.10%
6.63M

Evening View
Commodity
MCX Gold
Intraday View
MCX Gold (June contract) has immediate support at Rs.29150 whereas short term support
is at Rs.28930. On the higher side, key resistances are placed at Rs.29280 – 29380 level.
Rise above Rs.29380 could lead to a sharp rally towards Rs.29500. As long as below
Rs.29380, sideways to negative movement may continue.
Strong support Spot Gold is at $1240 whereas key resistances are placed at $1256 -
1262. Breach on either side of the given range could provide us further direction.
NCDEX Gold Hedge (May) may trade within a broad range Rs.26500 - 26780 levels for the
session.
MCX Silver has intraday supports at Rs.39580 – 39500 - 39300 levels. Dip buying is still
advised as long as Rs.39300 is held. Strong intraday resistances are placed at Rs.40100 –
40500 level.
Short term bias for Spot Silver remains positive as long as $16.82 is held as strong support.
The metal could target $17.28 - 17.40 levels.
MCX Copper has strong short term support at Rs.320.50 whereas intraday support is at
Rs.322.70. Dip buying is advised as long as price hold above short term support. Price
break above immediate resistance of Rs.326 will lead the rally towards Rs.330.
MCX Nickel looks to trade with a positive bias for the session and dip buying near Rs.600 is
advised. Critical support is at Rs.583 whereas resistance is at Rs.614 - 626 levels.
MCX Crude Oil faces stiff resistance near Rs.2800-2820 area. As long as price trades below
the same, selling on rise is advised. Strong short term supports are placed at Rs.2750 –
2715 - 2660.
MCX Natural Gas remains bullish as long as Rs.136 is held on the lower side. Dip buying is
advised targeting Rs.140 – 142 zone. Move below Rs.136 could result in deeper correction
towards Rs.134.00.
MCX Lead has stiff resistance at Rs.117.50 level. Failure to break above resistance could
signify weakness towards Rs.115.50 - 114.65 level, whereas, rise above Rs.117.50 could
continue the pullback towards Rs.118.50-119.
MCX Zinc looks positive as long as Rs.124.90 is held as strong support. The metal could
target Rs.128.30 - 129.10 levels. Immediate support is at Rs.125.60. Dip buying is advised
for the session.
MCX Aluminum looks bullish as long as Rs.104 is held as key support. Resistance is at
Rs.106.30 - 107.65 area. Buying on dips near Rs.105.50 is advised.
Gold $ (SPOT)
Gold HEDGE (NCDEX)
MCX Silver
Silver $ (SPOT)
MCX Copper
MCX Nickel
MCX Crude Oil
MCX Natural Gas
LEAD
ZINC
ALUMINIUM
Disclaimer