Monday, May 7, 2012

Commodity Market Strategy Report

Gold Strategy Report:

Spot gold weakened slightly weighed by a strong dollar which rose due to the elections in France and Greece.  The Euro dropped to a three month low against dollar after the election which raised worries of a Euro zone debt crisis again. At the same time slothful US payroll numbers on Friday are likely to prompt hopes of another round of the monetary easing programmed  which may raise gold’s safe haven appeal again. As per the data available from US Commodity Futures Trading Commission, speculators lifted up their bullish bets in gold to the highest level since early April in the first week of May. However physical demand for gold from Asian markets remained subdued with buyers moving back to the sidelines. Even though the support of 1630 has been cleared, auxiliary moves were inadequate to strengthen the anticipated broad bearish outlook. The Lower end of the Bollinger band, along with trend line supports, are restricting prices from major liquidation pressures.  Since the start of April, prices have been congested inside 1680-1610 levels and any of the side breakouts will put additional pressure on prices. Briefly, enduring chart formation suggests heavy selling but requires to 1672 remain undisturbed. For the day we favor an initial pullback followed by a drift lower which could probably target 1610/1580 or even more later.
Today's expected resistance and support levels for Gold are
R- 28980/29110
S- 28870/28725

Silver commodity Market Review:

As long as 56000-55800 hold the downside expect a push higher towards 55500 followed by 56800.  However, it would be required to break 57050 with convincing volume to extend the rally, else would see a choppy with negative session. Expected Silver commodity levels for today are

R- 56260/56780
S- 55500/52100/54800

Copper Market Strategy:

Yesterday copper prices are in correction mode as we said we should wait till 440-438 mark to initiate long positions and till the time we can sell on rise till 446-47 with strict s/l of 451.2. Today's level for copper are

R- 442/447
S- 434/428

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