Monday, October 7, 2013

Commodities market evening update for October 7, 2013

Precious Metals continued to remain in range as the US government shutdown continued forthe second consecutive week as the president and the senate struggle to arriveat a decision; gold is trading at 1313.30 an ounce, up 3.30 having traded in arange of barely ten points today and silver is registering a 3 cent gain to trade at 21.785 an ounce at present. A completely different picture in the domestic markets saw bullions appreciate due to the rupee, gold is up 237points to trade at 29326.0 per ten grams and silver is up 414 points to tradeat 48643.0 per kilogram. The rupee broke a four day gaining streak to closeweaker today at 62.18, down 25 paise or 0.40% against the dollar. Gold is trading in a tight range of 1305.0-1320.0, expect trending moves once prices break above or below this range. Silver is trading in between 21.30-22.10. Ourview on precious metals is neutral.


Base Metals are also having a quiet trading session today; aluminum being the only exception, metals traded on LME are down today lead by Nickel at 13820.0,-129.0, -0.92%, followed by Copper at 7201.25, -50.25, -0.69%. On MCX, basemetals futures are trading in green due to the weaker rupee with only copper and nickel being an exception. Copper is trading at 4530, -1.20, -0.265 andNickel is down 1.40 or 0.165 to trade at 858.10. Over the past week and today, copper has found a good support near 7150.0 below which prices should fall to 7100.0 and possibly lower. A resistance zone is expected to come into play near 7300.0-7330.0 if prices move upwards. Our view is negative on copper and basemetals as a whole for intraday.



Crude Oil is down 1.16 or 1.12% to 102.68 per barrel whereas Natural Gas is up 0.91%to trade at 3.538 per mmbtu. In the domestic market, oil is down 15 points to6371.0 and natural gas is higher by 4 points or 1.855 to trade at 220.10 per mmbtu. Crude Oil may fall further in intraday today as it is trading below a support at 102.80 which in turn is acting a resistance this time around a good short selling opportunity is seen once prices break below 102.50 today. Natural Gas is also likely to fall further in the evening session.

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