Commodity market evening round up for October 9, 2013

Precious metals on COMEX closed almost flat after trading between gains and losses as investors assessed the deadlock between US lawmakers over the debt limit and government shutdown and the implication for monetary stimulus by the Federal Reserve. Actively traded Gold contract settled flat at 1324.60 with aluminium decline of 50 cents after having tested a high of 1330.80 and low of 1315.40 while front month Silver futures closed at 22.44, up 0.06points or 0.25% an ounce.

Base metals closed higher on the London Metal Exchange, except Nickel and Copper which were settled in red.3-month Lead was top performing metal among the group, jumped around 1.5% or 30.25 points to 2092.75 after having tested a high of 2108.00, followed by Aluminum and Zinc which were rose half a percent each to 1862.50 and 1887.50 respectively. Copper tested a high of 7295.00 before settling at 7233.50, down 5 points per metric ton.

WTI Crude Oil gained on Tuesday as US lawmakers took steps toward raising the government's debt limit, reducing the likelihood of a default that slows economic growth and weaker the fuel demand. Light Sweet Crude Oil futures rose around half a percent or 0.46 points to 103.49 after having tested a high of 104.08 per barrel. EIA is set to be released their Weekly Crude Oil Inventories report tonight at 8.00PM with a market forecast of 0.9 Mbd against the previous week of 5.5 Mbd while US Private agency API showed gain in stockpiles by 2.8 mbd. Natural Gas futures continued its rally for the straight two days due to warmer weather forecast which spur the demand for this energy complex. Front month Natural Gas futures settled almost three weeks high at 3.72, up 2.40% or 0.09 points.

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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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Commodity market update for October 7, 2013

Precious metals edged lower on Friday, as investors continued to monitor political developments in Washington. Actively traded Gold contract fell 7.70 points or 0.58% to 1,309.90 after trading between gains and losses while front month Silver future settled almost flat at 21.75 with a meager decline of 3 cents after having tested a low of 21.50 an ounce.

With the exception of Lead, Base Metals settled higher on the London Metal Exchange due to weaker dollar against the othercurrencies. 3-month Nickel was top gaining metal among the group, surged around 3% or 394 points to 13949.00 followed by rest of the metals. Copper gained 56.75 points or 0.79% to 7251.50 after having tested a high of 7282.50 per metric ton while Lead tested a low of 2046.00 before settling at 2054.25, eased 5 points or 0.24%.

NYMEX traded crude oil futures ended higher on Friday as investors continued to monitor tropical storm activity in the Gulf of Mexico which raised concerns over a disruption to supplies from the region. WTI CrudeOil increased 0.51% or 0.53 points to 103.84 after having tested a high of 104.19 per barrel. Front month Natural Gas futures settled almost flat at 3.51 with marginal gain of a cent or 0.20% after having tested a high of 3.54 on NYMEX.

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Commodity market round up for October 4, 2013

Precious Metals continue to remain in range for the second day. Gold is trading at1317.10 an ounce, unchanged from previous close and Silver is losing 7 cents totrade at 21.71 an ounce. Prices in the domestic market are down nearly apercent with Gold at 29240.0, down 232.0 or 0.79% and Silver at 48179.0, down474.0 or 0.96%. The rupee strengthened against the dollar for the fourthconsecutive day to close at 61.44, up 30 paise or 0.49%; October futures closedat 61.82, up 31 paise. Gold is trading below a good intraday resistance at1320.0 above which we expect prices to move higher to 1340.0-1350.0 levelstoday. On the downside, any declines should find support at 1300.0 and furtherlower at 1280.0 in intraday. Silver has once again settled into the previousrange of 22.25-21.30. The intraday bias is neutral on precious metals.


BaseMetals are also having a quiet session today; three month copper futures aredown 11.75 to 7183.0 per ton. With the exception of Nickel which is up 0.60% at13636.0 per ton, the rest of the metals are also trading marginally in red. OnMCX, except nickel, base metals are losing nearly a percent each due to therupee � copper is down 4.45 or 0.975 at 450.0 and nickel is down 2 points totrade at 842.0 at the time of writing this. Copper is likely to consolidatefurther in intraday with support coming into play at 7150.0 and resistance at7210.0. A breakdown below 7150.0 should provide good short sellingopportunities in intraday; our bias is negative on base metals today.


Oil and Gas pricesare higher today; crude oil is trading at 103.73 per barrel, up 42 cents or0.41% and natural gas is slightly higher at 3.503 per mmbtu, up 0.11%. Pricesare lower in the domestic market crude is down 50 points or 0.76% at 6404.0and natural gas is down 1.235 to trade at 217.10 now. Crude Oil seems to be ina recovery mode and we expect prices to remain positive today and moving intonext week; having build a strong support zone near 101.0-103.0 prices look setto test 106.0-107.0 in the coming days. We will be looking for buyingopportunities above 104.0 today.

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Commodity market evening round up for October 3, 2013

Precious metals closed higher on COMEX Wednesday, supported by a weaker than expected ADP Non-Farm Employment Change data and uncertainty over future talks about US debt ceiling and future monetary policy of the world largest economy. Actively traded Gold contract surged 2.68% or 34.50 points to 1320.60 while front month Silver futures tested a high of 22.04 before settling at 21.90, up around 3.5% or 0.72 points an ounce. US Department of Labor is set to be released their weekly number of Jobless Claims with a market forecast of 315,000 against the market forecast of 305,000. 

Base metals prices rallied on the London Metal Exchange due to weaker dollar against the other currencies and short coverings after the Tuesday's steep decline. 3-month Copper was leading the metals group, up 1.34% or 96.0 points to 7286.00,followed by rest of the metals. Lead gained 1.18%or 24.25 points to 2086.50and Aluminum rose 1.14% or 20.75 points to 1844.00after having tested a high of 1848.00 per metric ton. 

WTI Crude Oil futures Oil futures rose on Wednesday after Trans Canada Corp. said the southern leg of its Keystone XL pipeline is nearly complete, and traders bet the construction will help improve a glut of supplies at a key US storage hub which shadowed the gain inCrude Oil stockpiles by 5.5 Mlb, better than the previous of 2.6 Mlb. Light Sweet Crude Oil futures rose 2.02% or 2.06 points to 104.10after having tested a high of 104.23 per barrel.

Front month Natural Gas futures declined on Wednesday on the expectation of gain in Natural Gas Storage which is set to be released tonight at 8.00PM with a market forecast of 96 Bcf against the previous of 87 Bcf. Actively traded Natural Gas contract fell to 3.54, down 1.86% or 0.07 points per mmbtu.

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Metals and Energy - Market Update 30.09.2013

Precious metals closed higher on COMEX Friday as concern that US government may be shutdown due to budget impasse which boosted safe heaven demand. Actively traded Gold contract rose 1.12% or 14.80 points to 1338.40 after having tested a high of 1343.80 an ounce while front month Silver futures tested a low of 22.18 before settling at 21.83,up 0.07 points or 0.30%.

Base metals prices rallied on the London Metal Exchange Friday on the hopes that Federal Reserve may continue its aid to the US economy till to start of 2014 which boosted investors confidence for this industrial metals. 3-month Aluminum was leading the metals group,gained 1.21% or 22points to 1840.00 while Copper tested a high of 7308.50 before settling at 7292.00, up 34.50 points or0.48%followed by rest of metals which also gained around a percent each.

WTI Crude Oil futures fell on Friday as tensions eased between the United States and Iran and reduce worries about Oil supplies from the Middle East Countries.Oil prices also lower on concern that the US government is headed for a shutdown over a budget stalemate that would reduce demand in the world's largest oil consumer. Light Sweet Crude Oil futures tested a low of 102.36before settling at 102.87, down 16 cents or 0.16% a barrel. Front month Natural Gas futures settled higher at 3.59,up 2 cents or 0.62%after having tested a high of 3.61 on NYMEX.

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