Commodity Report Outlook|24 carat financial services | 30 august 2017

commodity tips:-

MCX REPORT:-

 

Mcx Report

Mcx Report

•  Bullion:- 

• Gold rallied to a 10-month high spurred by safe haven buying after North Korea test fired several rockets into the sea over Japan renewing tensions in the South Asian region. Gold futures, for immediate delivery, is trading at $1328.62/oz, up over a percent whereas Silver is up 18 cents to trade at $17.63/oz.
• Gold has been gaining steadily over the past few weeks as geopolitical tensions pushed prices to its highest level in 2017 and the recent consolidation was a result of the absence of the safe haven factors which waned over the past week. North Korea recent provocation once again brings back buying in precious metals. We are also set to see the Consumer Confidence figures from the US which may have weakened in August according to forecasts, a weaker figure could push Gold further higher.
• In the short term, we maintain a very bullish view on Gold and expect prices to test $1350-$1360 in the coming weeks.    

• Energy:-  

• Crude Oil prices continued to dip further for the second day this week as the market continued to analyze the situation. WTI futures, traded on NYMEX, is down 0.34% to trade at $46.37/bbl while domestic prices are trading at Rs.2975, up 5 points today.Hurricane Harvey, the largest storm to hit the Gulf Coast shut down a majority of refining units and off shore drilling rigs as it made landfall over the week. 
• The major impact as felt in the Texas region which accounts for almost 11% for the entire US refining capacity. The immediate impact was a sharp rally in gasoline prices and crude is likely taking the collateral damage as closed refineries would lead to lesser demand for oil prices. The full extent of the damage is yet to be understood and a drawn out impact/closure of facilities could eventually lead to prices recovering higher as we move ahead. 
• The short term picture looks weak for Crude prices are we may see further declines this week. Support is seen at Rs.2950 breaking which we expect oil to drop below Rs.2900. We also have the API oil storage forecast overnight and the EIA reports tomorrow which could infuse further volatility in prices.

• Base Metals:-

• Base Metals extended gains with short sellers being wrong footed at every price. Nickel and Lead are the leading performers today gaining over 3 percent each followed by Zinc and Aluminium. LME Copper is higher by 1.68% at $6812.50/ton.
• The relentless rally in Base Metals not only signals a strengthening economy but it also indicates the beginning of a major bull market in the industrial metals. The higher prices driven by expectations of stronger demand from China and US, supply deficits forecasts and a wide range of policy measures to cut down production across global producers have been the key factors supporting prices. We have been cautious on prices for the past 2 days indicating that the market may have overrun its course and should be due for a sharp correction in the near term which should also help keep the bull trend intact. 
• Without the weight of evidence suggesting a reversal, we advise continuing to consider long positions in base metals with tighter stop losses and larger targets on the upside.
  
  The intraday bias continues to remain positive with a cautious stance.

 If you want to more information regarding the Stock tips,commodity tips, nifty tips missed call @ 9069102223 or fill form http://24cfin.com/free-trial