BULIONS & BASE METALS LEVELS FOR 3 MAY 2016

Bullions:   Gold and silver are extending gains in early trade as weakness in the dollar weak U.S. data lifted safe haven demand. The short term trend continues to look bullish for both metals. Gold is trading close to $1300 as U.S. rate hike probabilities continue to decline. Fed Funds futures now reflect 11% odds of a rate hike at the Fed’s June meeting, and 28% by July.

COMMODITY	S2	S1	PIVOT	R1	R2	TREND	RANGE
Gold	29504	29885	30130	30511	30756	BULLISH	30008-3600
Silver	41000	4300	41700	4200	42500	BULLISH	41200-41850

Base Metals: Base metals are flat to lower in early trade as a weaker manufacturing data from China, U.S. as well as Japan is weighing on sentiment. China’s official PMI was lower at 50.1 in April compared to 50.2 in March. In U.S, the Chicago PMI showed manufacturing activity in the Midwest

expanded in April, but at a slower rate than the prior month. Zinc is likely to gain as the global zinc market is forecast to have a deficit of 352,000 tonnes in 2016. Zinc usage is expected to rise 3.5% to 14.33 million tonnes in 2016. The short term bias for metals looks mixed as a weaker dollar will support prices and global growth concerns will cap the rallies.

COMMODITY	S2	S1	PIVOT	R1	R2	TREND	RANGE
ALUMINIUM	111	111.6	112.15	112.75	113.3	BULLISH	110.5-111.8
COPPER	331	334.8	337.75	341.55	344.5	BULLISH	333-340
LEAD	118.53	119.52	121.13	122.12	116.92	BULLISH	119.5-121
NICKEL	622	629.9	639.7	647.6	612.2	SIDEWAYS	627-638
ZINC	126.42	127.73	128.72	130.03	131.02	BULLISH	128-130