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									        MTECHTIPS COMMODITY MARKET NEWS 2
MTECHTIPS:-The coming insane rally in Gold and Silver

When you treat the disease, you save the patient; when you treat the symptoms, you kill the
patient.Outrageous Capitalism has defaulted on a promise and is creating a new-normal which is
pretty much abnormal.Cyprus was a test-tube case where the EU bail-in deal was cloned rather
clandestinely.When you finish reading this article I earnestly believe you would feel two peculiar
shivers. The shiver out of fear and the sheer shiver out of greed! Fear because, a nameless turmoil
could be waiting in wings; greed because, the turmoil can take gold and silver to insanely high levels;
don't ask me “when?”.Because, your politicians, whom you diligently sent to the respective
Parliaments should know it best. If I were you, I would not even ask the question “when” and wait for
a useless diplomatic answer. I would rather use the time, energy and money to hoard tons and tons as
well as nuggets and nuggets of precious metals; especially gold and silver.A big rally is coming and
may be it has begun already! So hop in and don't wait for the last bus! It may well not arrive.



MTECHTIPS:-MCX Gold, MCX Silver to witness short covering this week; MCX Crude Oil, MCX Copper
bearish

Gold and silver on India’s Multi Commodities Exchange crashed to lower levels last week. Crude oil
gained on high demand from investors while copper was still on the verge of a downfall.Algorithmic
trading with mechanical sell positions promoted steep fall in gold and silver prices. Persisting slow
down in Chinese economy and sad state of affairs in European economy ensured the commodities
remained in bearish zone. High demand from importers kept crude oil in positive territory.MCX gold
for August delivery may trade sideways to down this week. Short covering is expected at lower levels.
Support: 24800, 24000; Resistance: 26300, 27100MCX Gold traded in the range of 24830-27000 last
week. The commodity remained in bearish territory as U.S gold crashed to $1183 per oz.Release on
U.S Nonfarm pay rolls, Weekly Jobless Claims, Trade Balance and Spending may put pressure on gold
prices in the global markets.MCX silver for September delivery may trade bearish this week. Sell on
rise is advised to the traders. Support: 39000, 38000; Resistance: 41700, 41999Last week, MCX silver
traded in the range of 38536-41334. The commodity crashed tracking gold prices. COMEX silver also
witnessed a bear rally to lower levels.Chinese HSBC Services PMI and Euro zone retail sales data is
likely to announce this week. Worries over Chinese economy may put pressure on silver prices.MCX
crude oil for July delivery may trade with negative bias this week. Support: 5550, 5310; Resistance:
5850, 5890MCX crude oil traded in the range of 5570-5867 last week. Depreciation of Indian Rupee to
60.5 levels against dollar capped further fall in crude oil prices.American Petroleum Institute release
on US crude oil and gasoline inventories are scheduled for Wednesday. Weakness in Dollar Index may
impact crude oil prices further. MCX copper for June delivery is expected to trade sideways this week.
Support: 398, 389; Resistance: 418,420MCX copper traded in the range of 406-413 last week. The
commodity witnessed low volatility on Chinese outlook.
MTECHTIPS:-MCX Copper negative; support 403 and 400

The trend in copper futures for August delivery on India's Multi Commodity Exchange (MCX) is
negative and the base metal is expected to continue with the trend for the day.“For intra-day, support
for the commodity is seen at 403 and 400 levels while resistance is seen at 410.5 level. If prices break
and sustain above 410.5 level, then the futures may trade higher till 413 level,“Intra-day traders may
sell at higher levels for the day,” he noted.MCX copper for August delivery was seen trading slightly
positive by 0.57% at 408.90 level as Indian Rupee (INR) appreciated against US Dollar.Also, a slight rise
in industrial demand in the domestic and international market may have supported copper prices to
some extent.The United States Institute of Supply Management (ISM) is scheduled to release its
Purchasing Managers' Index at 07.30 PM IST today while US Census Bureau is expected to release its
data on Construction Spending at 07.30 AM IST today.

MTECHTIPS:-MCX Natural Gas negative; support 211, 208

The trend in natural gas futures for July delivery on India's Multi Commodity Exchange (MCX) is
negative and intra-day traders are advised to sell at higher levels.“For intraday, support for the
commodity is seen at 211 and 208 levels. Resistance for the futures is seen at 216.5 and 220
levels,”MCX natural gas futures for July delivery was seen trading down by 0.61% at Rs.213.50 per
mmBtu as of 02.28 PM IST on Monday.NYMEX natural gas for August delivery was seen trading
slightly up by 0.59% at $3.586 per mmBtu as of 02.43 PM IST on Monday.Last week, NYMEX natural
gas prices settled lower in nearly four months on rising natural gas inventory levels amid an uncertain
demand outlook.US working gas in storage was 2,533 Bcf as of Friday, June 21, 2013, according to EIA
estimates. This represents a net increase of 95 Bcf from the previous week. Stocks were 522 Bcf less
than last year at this time and 31 Bcf below the 5-year average of 2,564 Bcf.

MTECHTIPS:-Gold shoots higher in Asia, builds on Friday’s gains

Following some end of quarter short covering that boosted gold futures last Friday, the yellow soared
in the early part of Monday’s Asian session as traders continued to look for bargains among precious
metals.On the Comex division of the New York Mercantile Exchange, gold futures for August delivery
climbed 1.04% to USD1,236.45 per troy ounce in Asian trading Monday after settling up 1.12% at
USD1,225.15 a troy ounce in U.S. trading on Friday,Even with Friday’s strong showing, gold plunged
4.8% last week and finished the second quarter with its worst quarterly loss since 1968. Gold futures
were likely to find support at USD1,180.35 a troy ounce, Friday’s low and a 24-month low and
resistance at USD1,210.90, the high from August 6, 2010. For the quarter, the precious metal declined
nearly 23%, the largest quarterly loss on record, amid speculation the Fed will start to unwind its bond
purchasing program in the coming months. Gold prices are on track to post a loss of 27% on the year,
the worst yearly decline since 1981, after rising in each of the past 12 years. Gold rallied last Friday as
stocks sagged despite some decent U.S. data points. In U.S. economic news out last Friday, the
Thomson Reuters/University of Michigan's final reading on June U.S. consumer sentiment was 84.1,
well above the initial reading of 82.7. Economists expected a final June reading of 82.8. MTECHTIPS:-
Oil down as Fed concerns linger
Oil futures traded slightly lower in the early part of Monday’s Asian following a weekly gain last week
amid lingering concerns about the Federal Reserve’s next monetary policy moves.On the New York
Mercantile Exchange, light, sweet crude futures for August delivery fell 0.38% to USD96.20 per barrel
in Asian trading Monday after settling 0.6% Friday to settle the week at USD96.46 a barrel by close of
trade.Despite the small Friday loss, crude futures jumped 2.65% on the week. For the quarter,
however, oil declined nearly 1%, as a combination of concerns over an end to the Fed’s assets
purchase program and fears over a deepening slowdown in China weighed. In U.S. economic news
out last Friday, the Thomson Reuters/University of Michigan's final reading on June U.S. consumer
sentiment was 84.1, well above the initial reading of 82.7. Economists expected a final June reading of
82.8. Chicago are PMI fell to a 51.6 reading from 58.7 in May. Economists expected a June reading of
55. Readings above 50 indicate expansion. The U.S. is the world’s largest oil consumer. Oil traders
could be pensive about the Federal Reserve possibly starting to taper its USD85 billion per month in
bond-buying, although members of central bank were out in force last week trying to calm jittery
markets that easing will remain in place for the near-term.

MTECHTIPS:-Gold, silver futures rally 2% to move further away from 3-year lows

Gold futures were higher for the second consecutive day on Monday, continuing to rebound from last
week’s 34-month low as investors returned to the market to seek cheap valuations. On the Comex
division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,244.35
a troy ounce during European morning hours, up 1.7% on the day. Comex gold prices rose by as much
as 1.9% earlier in the session to hit a daily high of USD1,247.25 a troy ounce. Gold futures were likely
to find support at USD1,180.35 a troy ounce, Friday’s low and a 34-month low and resistance at
USD1,276.05, the high from June 26. The precious metal extended gains from the previous session as
traders closed out bets on lower prices after futures moved into oversold territory, a move known as
covering a short position. Gold prices fell to USD1,180.35 a troy ounce on Friday, the weakest level
since August 3, 2010. For the quarter, the precious metal declined nearly 23% in the second quarter,
the largest quarterly loss on record, amid speculation the Federal Reserve will start to unwind its
bond purchasing program in the coming months. Gold prices are on track to post a loss of 27% on the
year, the worst yearly decline since 1981, after rising in each of the past 12 years. Sentiment on the
precious metals has been downbeat in recent months amid growing expectations the Fed will begin to
taper off its bond-buying program by the end of this year Moves in the gold price this year have
largely tracked shifting expectations as to whether the U.S. central bank would end its bond-buying
program sooner-than-expected.

MTECHTIPS:-Crude oil swings between gains and losses on China PMI data

Crude oil futures fluctuated between small gains and losses on Monday, as investors digested a pair of
disappointing reports on the Chinese manufacturing sector. Ongoing expectations the Federal Reserve
will start to unwind its bond purchasing program in the coming months also weighed. On the New
York Mercantile Exchange, light sweet crude futures for delivery in August traded at USD96.65 a barrel
during European morning trade, little changed on the day. New York-traded oil prices held in a range
between USD96.08 a barrel, the daily low and a session high of USD96.87 a barrel. China’s official
manufacturing purchasing managers’ index came in at 50.1 in June, in line with expectations,
following a reading of 50.8 in May. Separately, China’s HSBC manufacturing PMI fell to a nine-month
low of 48.2 in June, down from a preliminary reading of 48.3 and further below the 50.0 level that
separates contraction from expansion. China is the world's second largest oil consumer after the U.S.
and has been the engine of strengthening demand. Oil traders now looked ahead to this week’s
highly-anticipated U.S. nonfarm payrolls data for indications of how the recovery in the U.S. labor
market is progressing. Any improvement in the U.S. economy was likely to reinforce the view that the
Federal Reserve will begin to taper its bond purchase program in the coming months. The Fed’s
stimulus program is viewed by many investors as a key driver in boosting the price of commodities as
it tends to depress the value of the dollar. The U.S. is the world’s biggest oil consuming country,
responsible for almost 22% of global oil demand. Elsewhere, on the ICE Futures Exchange, Brent oil
futures for August delivery eased up 0.1% to trade at USD102.28 a barrel, with the spread between
the Brent and crude contracts standing at USD5.63 a barrel, the narrowest level since January 2011.

MTECHTIPS:-Silver futures bounce off 34-month low, tracking gold higher

Silver futures were higher on Monday, moving further off last week’s three-year low as investors
returned to the market to seek cheap valuations. On the Comex division of the New York Mercantile
Exchange, silver futures for September delivery traded at USD19.64 a troy ounce during European
morning trade, up 0.9% on the day. Comex silver prices rose by as much as 2.9% earlier in the day to
hit a session high of USD20.06 a troy ounce. Silver prices were likely to find support at USD18.19 a
troy ounce, Friday’s low and a 34-month low and resistance at USD20.19, the high from June 24. The
precious metal extended gains from the previous session as traders closed out bets on lower prices
after futures moved into oversold territory, a move known as covering a short position. On Friday,
silver futures fell to a low of USD18.18 a troy ounce, the cheapest level since August 24, 2010. For the
quarter, the precious metal declined nearly 31% in the second quarter, amid speculation the Federal
Reserve will start to unwind its bond purchasing program in the coming months. Sentiment on the
precious metals has been downbeat in recent months amid growing expectations the Fed will begin to
taper off its bond-buying program by the end of this year. Moves in the silver price this year have
largely tracked shifting expectations as to whether the U.S. central bank would end its bond-buying
program sooner-than-expected.

MTECHTIPS:-Copper climbs to 2-week high despite China manufacturing data

Copper futures rose to a two-week high on Monday, despite the release of mixed Chinese
manufacturing data and amid expectations for the Federal Reserve to scale back its stimulus program
before the year end. On the Comex division of the New York Mercantile Exchange, copper futures for
September delivery traded at USD3.111 a pound during European morning trade, up 1.75% on the
day. New York-traded copper prices rose by as much as 2.1% earlier in the session to hit a daily high of
USD3.120 a pound, the strongest level since June 20. Copper’s strong performance came despite
mounting concerns over a slowdown in Chinese manufacturing activity. China’s official manufacturing
purchasing managers’ index came in at 50.1 in June, above expectations for 50.0, following a reading
of 50.8 in May. Separately, China’s HSBC manufacturing PMI fell to a nine-month low of 48.2 in June,
down from a preliminary reading of 48.3 and further below the 50 level that separates contraction
form expansion. China is the world’s largest copper consumer, accounting for almost 40% of world
consumption last year. Market players now looked ahead to Friday’s highly-anticipated U.S. nonfarm
payrolls data for indications of how the recovery in the U.S. labor market is progressing.

MTECHTIPS:-MCX Nickel, Lead positive; resistances 834, 840 and 123.7, 124.4

Nickel futures of July delivery on India's Multi Commodity Exchange (MCX) is positive and the
commodity is expected to continue with the trend for the day.“For intra-day, support for the
commodity is seen at 818 and 810 levels while resistance is seen at 834 and 840 levels.“Traders can
take long position near 820 with the stop loss of 810 for the target at 830 and 834 levels,” he
added.MCX nickel for July delivery was seen trading up by 0.10% at Rs.824.70 per kilogram as of 04.04
PM IST on Monday.Nickel traded sideways this morning. The prices were seen trading in the range of
818-840 for the last a few sessions. India's HSBC Markit Manufacturing PMI rose to a seasonally
adjusted annual rate of 50.30, from 50.10 recorded in the last month. However, new orders in the
factory sector fell marginally this month. The United States Institute of Supply Management (ISM) is
scheduled to release its Purchasing Managers' Index at 07.30 PM IST while US Census Bureau is
expected to release its data on Construction Spending at 07.30 AM IST today.

								
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