OUTLOOK FOR GOLD, SILVER, CRUDE, COPPER ON 18 MAY 2015

Gold demand from India increased 15 per cent in first quarter

Despite the fact that the demand for gold globally reached a level during the first quarter of 2015, the precious metal’s demand from India during the same period increased by 15 per cent, as per the World Gold Council.The demand was seen to be on the higher side due to positive policy changes and market sentiments. The hike was also fueled by demand for jewellery in the country, which increased by 22 per cent to reach 150.8 tonnes during the period.

The trend is expected to continue in the second quarter as well as on the back of increase in buying, lower prices and economic growth.Gold, though looking strong , has showed a strong resistance at the level of USD 1,220 per ounce. It is recommended to buy the precious metal with the stop loss (SL) of USD 1,205.

Silver range-bound, may rise after touching INR 40,000

After yesterday’s rally, silver has not been able to sustain the upward movement. It is currently trading at INR 39,670 per kg, after opening at INR 39,591 per kg at MCX. the white metal may gain momentum if it trades over INR 40,000 per kg during the day. This will provide quick gains for intra-day traders. However, caution is required in such cases as the prices could fluctuate rapidly. The rally was not sustained in the market as investors in the international market were seen to be pulling out their positions for profit-booking.

crude oil gains, Dollar Weaken

On the back of weak dollar and the speculations regarding fall in US crude oil inventories, oil prices were seen to be gaining .While the US benchmark West Texas Intermediate  was at USD 61.21 per barrel, gaining 46 cents, Brent crude reached USD 67.06 per barrel , the commodity was seen to be at the levels of INR 3,900 – INR 3,955 per barrel . Interestingly, the opening price is still seen as the lowest of the day at INR 3,900, which indicates crude gaining in strength.The commodity is being provided with strong resistance at INR 4,000, together with positive fundamentals. Speculations are ripe about rise in demand for crude from China and fall in production in the US.However, traders need to keep an eye on OPEC's meeting to be held on June 5 for more momentum in the market.

Copper rises a little, caution needed

Copper at the London Metal Exchange  witnessed small growth on the back of weak US dollar and speculations about China to introduce more stimulus packages to revive economic growth in the country.The metal traded at USD 6,422 a tonne at LME in the morning hours. Experts believe that the price of the metal is reaching a range-bound market after it touched USD 6,481 per tonne last week – which was the highest till date in 2015. however, the metal slid narrowly and is trading currently at INR 414.1 per kg after opening at INR 416.05 per kg. traders should be cautious in their approach while investing in copper and should keep an eye on the fundamentals.