Monday, January 09, 2017
Commodity
Gold / US Dollar FX Spot
Silver / US Dollar FX Spot
Crude oil $ Spot
COMEX Copper $
LME Copper (3M)
LME Aluminum (3M)
LME Nickel (3M)
LME Lead (3M)
LME Zinc (3M)
Last
1172.7
16.5
54.0
343.5
5612.5
1713.0
10370.0
2066.0
2635.0
Chg.
-7.7
-0.1
0.2
-1.9
17.5
-5.0
75.0
-3.5
10.0
% Chg.
-0.6%
-0.5%
0.4%
-0.6%
0.3%
-0.3%
0.7%
-0.2%
0.4%
Market Overview (Economy)
Asian markets are edging higher following
positive close on the Wall Street as US
employment data lifted sentiment
Non-farm payrolls increased less than
expected but wage growth was at the
strongest since 2009 at 2.9% y/y.
Data over the weekend showed China’s
foreign-exchange reserves fell for a sixth
straight month.
IN currencies, the dollar rallied post the jobs
data and the rally is expected to continue
this week. The yuan has opened 0.3% lower
which will pressure the INR as well.
Equity
BSE Sensex Index
S&P CNX NIFTY
Hang Seng Index
Shanghai SE Composite Index
Nikkei 225 Index
DAX Index
CAC 40 Index
Dow Jones Industrial Average
Index
NASDAQ 100 Index
Last
26759.2
8243.8
22503.0
3154.3
19520.7
11599.0
4909.8
19963.8
5007.1
Chg.
-119.0
-30.0
46.3
-11.1
-73.5
14.1
9.2
64.5
42.1
% Chg.
-0.4%
-0.4%
0.2%
-0.4%
-0.4%
0.1%
0.2%
0.3%
0.8%
Precious Metals
Gold prices are trading flattish after a
positive close last week but better US
employment data will weigh on prices this
week
The US economy added 156k jobs in
December, which were fewer than expected
175k. Headline unemployment edged higher
to 4.7%
Average hourly earnings however increased
by 2.9% year-on-year, a post-recession
high.
US service and manufacturing PMI last week
also beat expectations
Chicago Federal Reserve President Charles
Evans hinted that the Fed could raise
interest rates three times this year.
The US economy added 156k jobs in
December, which were fewer than
expected 175k
.
1
Please refer to disclaimer at the end of the report.

Base Metals
Base metals are mostly flat to higher at the
open
as
better
US
jobs
and
global
manufacturing data is helping sentiment
China’s foreign currency holdings fell for a sixth
month in December to $3.01 trillion, bringing
last year’s drop to $320 billion
China last week stepped into both its onshore
and offshore yuan markets to shore up the
currency which led to a record two day gain of
2.9% in the currency.
Copper could face resistance as Shanghai
copper stocks jumped on Friday noting by 17%
or nearly 25000 tonnes.
Shanghai copper premiums also fell on Friday,
to $75 for material in Shanghai bonded
warehouse and to $70 for metal CIF Shanghai
China’s foreign currency holdings fell for a
sixth month in December to $3.01 trillion
LME Inventory
Commodity
Copper
Zinc
Lead
Nickel
Aluminium
Change
-6650
-75
-175
0
-5425
;
Source: Reuters
Energy
Crude oil prices are flat in early trade but are
likely to extend gains as OPEC members have
started to implement cuts as per the deal.
Reports suggest that Saudi Arabia has cut
production to meet OPEC's agreement which
helped prices further
Kuwait has reduced oil production in January to
around 2.707 million bpd, meeting its output
target
Iran meanwhile has sold more than 13 million
barrels of oil from its inventory which capped
prices.
The EIA reported a draw of 7.1 million barrels in
crude inventories. Gasoline and distillates stocks
however experienced massive stockpile builds of
8.3 million and 10.1 million respectively
Kuwait has reduced oil production in
January to around 2.707 million bpd,
meeting its output target
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
Feb
Feb
Mar
Mar
Feb
Feb
Feb
Jan
Jan
Jan
Jan
Close
27887
1172
40342
16.47
3682
53.99
383.55
178.05
140.60
700.5
116.65
S2
27740
1169
39359
16.78
3607
52.88
376.38
173.28
136.63
687.6
114.65
S1
27814
1170
39851
16.80
3645
53.43
379.97
175.67
138.62
694.1
115.65
Pivot
27898
1173
40194
16.80
3672
53.88
381.98
176.98
139.73
698.4
116.30
R1
27972
1175
40686
16.93
3710
54.43
385.57
179.37
141.72
704.9
117.30
R2
28056
1178
41029
17.01
3737
54.88
387.58
180.68
142.83
709.2
117.95
Trend
Strong
Strong
Strong
Bearish
Bullish
Bullish
Bullish
Bullish
Bearish
Bearish
Bearish
Conviction
Moderate
Low
Moderate
Moderate
Moderate
High
High
High
Moderate
Moderate
Moderate
Range
27777 - 27935
1170 - 1174
39605 - 40440
16.78-17.01
3659 - 3724
53.7 - 54.7
381 - 386.6
176.3 - 180
139.2 - 142.3
696 - 707
116 - 117.6
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.