4 May 2016

BULLIONS, BASE METALS & ENERGY LEVELS FOR 4 MAY 2016

Bullions:  Gold hovers below 15-month peak on Wednesday as dollar firms. Two Federal Reserve officials talked up US interest rate hikes this year. The dollar index, which measures the greenback's strength against six major currencies, finished Tuesday's session up 0.3 percent after hitting a 15-month low earlier in the session, recording its first increase in seven days. The recent rally in prices has prompted investors to pour money into gold funds.
COMMODITY
S2
S1
R1
R2
TREND
RANGE
Gold
29900
30080
30380
30500
BULLISH
30000 - 30480
Silver
40700
41200
41900
42300
BULLISH
40800 -41600
Base Metals: Base metals are mixed in yesterday’s trade as the decline in the dollar is supporting prices but weaker manufacturing data from China, U.S as well as Japan is weighing on sentiment. In China, the Caixin/Markit Manufacturing PMI fell to 49.4 last month, a 14th straight month of contraction. In U.S., the ISM PMI slipped to 50.8 percent in April from 51.5 percent in March. Aluminum may face resistance as Russia’s Rusal increased its Q1 production by 1.7% to 916,000 tonnes and Alcoa agreed a new power deal in Washington State to prevent the closure of its 279,000 tonne-per-year aluminum smelter. The short term bias for metals looks mixed as a weaker dollar will support prices but global growth concerns will cap the rallies.
COMMODITY
S2
S1
R1
R2
TREND
RANGE
Aluminum
106.5
107.8
108.75
110
BEARISH
107-110
Copper
323
327
332
335
BEARISH
330 - 340
Lead
115
116
118
119
BEARISH
116-119
Nickel
617
625
640
649
SIDEWAYS
618-640
Zinc
124
125
127
128
BEARISH
125-128
Energy: Oil prices may open flattish. The OPEC boosted output in April by 484,000 barrels to 33.21 million a day driven by increased production in Iraq. Iraqi exports approached a record high in April, climbing by 3.36 million barrels a day. Russian oil output fell slightly from a record high but exports increased m/m to 3.11 million bpd in April from 2.90mbpd in March. On the downside, a weaker dollar and the fall in U.S. rig count is supporting prices. The oil rig count also fell by 11 last week to 332 as per Baker Hughes data. The short term bias is likely to be choppy but a global risk off environment could act as a headwind to prices. On an intraday basis, we expect oil prices to trade lower as Iraq was the latest OPEC-member to announce its exports were rising after Saudi Arabia. Also, weak Chinese and U.S manufacturing data will exert further pressure.
COMMODITY
S2
S1
R1
R2
TREND
RANGE
Crude oil
2820
2870
2970
3040
SIDEWAYS
2870-2970


No comments:

Post a Comment