Monday, June 06, 2016
Market Overview (Economy)
Commodity
Gold / USD Spot
Silver / USD Spot
Crude oil $ Spot
COMEX Copper $
LME Copper (3M)
LME Aluminum (3M)
LME Nickel (3M)
LME Lead (3M)
LME Zinc (3M)
Last
1244.09
16.398
48.69
343.5
4721.5
1549
8640
1734.5
2016
Chg.
33.6
0.422
-0.45
-1.9
38.5
6
130
13.5
18
% Chg.
2.78%
2.64%
-0.92%
-0.55%
0.84%
0.39%
1.55%
0.79%
0.91%
Asian markets are up at the start of the
week as a big disappointment in U.S.
jobs data last week pushed back rate
hike expectations and consequently lifted
risk sentiment.
U.S. non-farm payrolls increased by just
38k in May, the lowest job additions in
more than 5 years even as wages grew
at a good pace.
In currencies, the dollar index is trading
near three week lows which lifted the
euro and commodities. The INR and
other EM currencies are also likely to find
strength this week.
Equity
BSE Sensex Index
S&P CNX NIFTY
Hang Seng Index
Shanghai Index
Nikkei 225 Index
DAX Index
CAC 40 Index
Dow Jones
NASDAQ 100 Index
Last
26843.0
8220.8
20947.2
2938.7
16642.2
10103.3
4421.8
17807.1
4509.8
Chg.
-0.1
1.8
88.0
13.5
79.7
-104.7
-44.2
-31.5
-21.6
% Chg.
0.00%
0.02%
0.42%
0.46%
0.48%
-1.03%
-0.99%
-0.18%
-0.48%
Precious Metals
Gold and silver are higher in early trade
as the dollar slumped post a big miss on
the jobs data on Friday.
The US economy added just 38k jobs in
May, against expectations of 160k, the
fewest since September 2010. The
readings for March and April were also
revised lower by a combined 59k.
However, the unemployment rate fell to
4.7% in May and wages grew 2.5% over
the prior year.
US rate hike odds in June have almost
dropped to zero while odds in July halved
to 30% from nearly 60% before the jobs
data. This is likely to keep precious
metals higher in the short term.
The US economy added just 38k jobs in
May, against expectations of 160k, the
fewest since September 2010.
1
Please refer to disclaimer at the end of the report.

Base Metals
Base metals are higher in early trade with Zinc
nearly 1% higher as a weaker dollar lifted market
sentiment globally.
Copper is finding support as copper production in
Democratic Republic of Congo dropped 20% in
the first quarter of 2016.
Also, Copper inventories in SHFE warehouses
having slid 47% since mid-March.
Zinc surged to its highest level in 10 months as
speculators bet weaker supplies would create
shortages. Cash zinc is at a small $2.00 per
tonne premium over three-month prices over the
last couple of days.
Sentiment in metals will remains influenced by
Chinese trade data due this week.
LME Inventory
Commodity
Copper
Zinc
Lead
Nickel
Aluminium
Change
150
2100
0
-2892
-7450
Copper inventories in SHFE warehouses
having slid 47% since mid-March.
Source: Reuters
Energy
Oil prices are flat to higher in early trade as a
weaker dollar coupled with continuing outages in
Nigeria supported prices.
The Niger Delta Avengers militant group has
claimed responsibility for three new attacks on
Nigeria's oil infrastructure and total output is
down nearly 50%.
Nigeria's oil production is down to just 800,000
barrels per day (bpd), from 2 million bpd.
US rig count however increased last week with
drillers adding 9 oil rigs. This may cap rallies in
oil price.
Some pressure to prices may also come as some
of Canada’s output is likely to continue its
resumption.
Nigeria's oil production is down to just
800,000 barrels per day (bpd), from 2
million bpd.
2
Please refer to disclaimer at the end of the report.

Level Playing Sheet
Commodity
Gold
Gold
Silver
Silver
Crude Oil
Crude Oil
Copper
Zinc
Lead
Nickel
Aluminum
Exchange
MCX
COMEX
MCX
COMEX
MCX
NYMEX
MCX
MCX
MCX
MCX
MCX
Expiry
Aug
Aug
July
July
Jun
July
Jun
Jun
Jun
Jun
Jun
Close
29387
1240
39079
16.35
3253
48.62
313.60
133.65
115.90
572.1
103.35
S2
28610
1192
38180
16.78
3190
47.71
305.37
130.72
113.83
563.6
102.15
S1
28999
1216
38630
16.80
3222
48.16
309.48
132.18
114.87
567.9
102.75
Pivot
29209
1230
38960
16.80
3273
48.79
313.47
133.67
116.18
574.6
103.90
R1
29598
1254
39410
16.93
3305
49.24
317.58
135.13
117.22
578.9
104.50
R2
29808
1268
39740
17.01
3356
49.87
321.57
136.62
118.53
585.6
105.65
Trend
Flat
Flat
Flat
Flat
Bullish
Bearish
Strong
Strong
Bearish
Bearish
Bearish
Conviction
Moderate
Moderate
Moderate
Moderate
Moderate
Moderate
Moderate
Moderate
Moderate
Moderate
Moderate
Range
29104 - 29703
1223 - 1261
38795 - 39575
16.78-17.01
3206 - 3289
47.9 - 49
311.5 - 319.6
132.9 - 135.9
115.5 - 117.9
571 - 582
102.5 - 104.2
For any details contact:
Commodities Advisory Desk - +91 22 3958 3600
commoditiesresearch@motilaloswal.com
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3
Please refer to disclaimer at the end of the report.