27 June 2015

Gold, Copper End Friday with Gains

Gold prices ticked up by the end of Friday’s trading as concerns about Greece drove investors to safe assets. The deadline for the repayment of the country’s debt is set to June 30, but so far there are no indications that the indebted country has come close to an agreement with its international creditors. The CFTC Commitment of Traders report showed that hedge funds increased their long position on the metal this week. August futures for delivery of bullion edged up by 0.16 percent to $1,173.70 per troy ounce as on COMEX today. Copper futures rallied as well on hopes for stimulus in China. Lately, the world’s biggest consumer of the metal had some troubles in sustaining its impressive economic growth, prompting Chinese government to take steps to bolster the economy. September futures for delivery of copper climbed 0.82 percent to $2.641 per pound today. Meanwhile, wheat and other grains extended their rally. Weather in the United States was adverse to the crops, promising smaller supply. This is a bullish factor for the agricultural commodities. September corn surged 2.55 percent to $3.9250 per bushel on CBOT today. November contract for soybeans rallied 0.84 percent to $9.86 per bushel while futures for delivery of wheat in September demonstrated a whooping gain of 5.58 percent to $5.68 per bushel.
Gold failed to breach $1210 levels last week and dipped below $1190.The break of $1190 is now likely to send gold further down towards the support level of $1080. The near term outlook remains bearish for Gold as in the Daily Chart it has broken out of the Major Channel and closed below the same. Meanwhile, a break of the resistance of $1210 will confirm the completion of the fall from $1190 and target retest the of resistance at $1245.As long as the $1210 resistance holds, a deeper decline is still expected and the current down trend would now target $1080-$1040. COMEX GOLD APRIL CMP- $1160;SELL COMEX GOLD APRIL IN THE RANGE OF $1165-$1163 FOR THE TARGET OF $1080-$1040 WITH A STOPLOSS OF $1210.

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