COMMODITY OUTLOOK FOR THURSDAY 06-FEBRUARY-2014

Trading Call for the day: Buy Silver in the range 44550-44600 with Stop Loss 44100 Target 45100.
The gold and silver closed positive on yesterday’s trading session where Gold settled up 0.29% at 28715 after data showed that U.S. non-farm private employment rose less-than-expected in January, fuelling concern over the labour market. Silver settled up 1.92% at 44392 but failed to hold an earlier rally as a mixed bag of U.S. economic indicators left investors uncertain over the pace of recovery in the world’s largest economy. The two commodities are expected to trade with positive bias for the day. Support for Gold is at 28600 & resistance at 28880. Support for Silver is at 44300 & resistance at 45200.

On yesterday’s trading session all base metals closed flat except Zinc closed positive as sentiments remain weak and investors were worried about weak demand in China and about the adjustment of the Chinese market to a drop in London prices when it reopens on Friday. The base metals shown some signs of recovery but could not sustain higher levels and the trend is still negative but the way equities are falling base metals might see a trend reversal soon.

MCX Crude oil settled up 0.3% at 6093 trimmed gains on Wednesday, after a U.S. government report showed that oil and gasoline supplies rose less-than-expected last week. Crude Oil is expected to trade within the range for the day. Intraday support for Crude Oil is at 6050 and resistance at 6150.
MCX Natural Gas settled down -2.73% at 324.50 turning lower as a round of profit taking kicked in after Natural gas futures rallied to the highest level since January 2010. The commodity made new highs but were not able to sustain above those levels. This is a sign of trend weakening, so the longs must use strict SL’s for their positions. Support for Natural Gas is at 320 & resistance at 337.

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