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R
EE E K L Y
P
O
Blow by Blow
On
R
Bullions,
T
Base metals,
24 NOV 28 NOV 2014

Energy

MAJOR EVENTS
Gold futures traded volatile on Friday on the back major economic events such as
FOMC minutes release, ECB president speech and China rate cuts.The euro tumbled,
after comments from officials both the euro zone. The euro currency quotes at
$1.2434, down 0.85% on Thursday and the US dollar index quotes at 88.16, up 0.52%
on Thursday. European Central Bank President Mario Draghi sent a strong signal
Friday that the central bank is ready to step up the pressure and expand its assetpurchase programs if inflation fails to show signs of quickly returning to the ECB's
target. If on its current trajectory our policy is not effective enough to achieve this, or
further risks to the inflation outlook materialize, we would step up the pressure and
broaden even more the channels through which we intervene, by altering accordingly
the size, pace and composition of our purchases, Mr. Draghi said. Annual euro zone
inflation was 0.4% last month, far below the ECB's target of just below 2%.In response
to both a slowing domestic and global economy, the People's Bank of China, the
country's central bank, has cut benchmark interest rates in the world's second-largest
economy. It has cut the one-year deposit rate by 25 basis points to 2.75 per cent and
the one-year lending rate by 40 basis points to 5.6 per cent.

Gold Volatile In
Midst Of Major
Economic Events.

West Texas Intermediate and Brent crudes increased after China, the worlds secondlargest oil-consuming country, cut interest rates to bolster its economy.
WTI rose 0.9 percent and Brent 1.3 percent after the Peoples Bank of China lowered
lending and deposit rates for the first time since 2012. Half of the 20 analysts
surveyed by Bloomberg News predict the Organization of Petroleum Exporting
Countries will reduce output at a meeting next week, while the rest forecast no
change. WTI for January delivery advanced 66 cents to settle at $76.51 a barrel on
the New York Mercantile Exchange. Prices rose 0.9 percent this week, the first weekly
gain since September. Futures touched $73.25 Nov. 14, the lowest intraday level
since Sept. 21, 2010. The volume of all futures traded was 19 percent below the 100day average at 2:50 p.m.Brent for January settlement increased $1.03 to end the
session at $80.36 a barrel on the London-based ICE Futures Europe exchange.
Volume was 0.4 percent higher than the 100-day average. The contract climbed 1.2
percent this week. The European benchmark crude closed at a $3.85 premium to
WTI.
Zinc futures edged up by 2.37 per cent to Rs 142.30 per kg today after speculators
built positions amid a firming trend in the spot market on good demand.

Crude Rises as
China Rate Cut
Spurs Optimism
About Demand.

Besides, the metal's strength at the London Metal Exchange (LME) supported the
upside.
At the Multi Commodity Exchange, zinc for delivery in November edged up by Rs 3.30,
or 2.37 per cent, to Rs 142.30 per kg with a business turnover of 8,897 lots.

The metal for delivery in December rose by Rs 3.25, or 2.33 per cent, to Rs 142.85 per
kg in a turnover of 1,092 lots.
Traders said fresh positions created by speculators on the back of improved demand in
the spot market and a firming trend in base metals overseas helped zinc futures to
trade higher.

Zinc futures rise on

spot demand,
global cues.

ECONOMIC CALENDER
DATE & TIME

DESCRIPTION

FORECAST

PREVIOUS

Nov 24 8:15pm

Flash Services PMI

57.3

57.1

Nov 25 7:00pm

Prelim GDP q/q

3.3%

3.5%

7:00pm

Prelim GDP Price Index q/q

1.3%

1.3%

7:30pm

HPI m/m

0.5%

0.5%

7:30pm

S&P/CS Composite-20 HPI y/y

4.7%

5.6%

8:30pm

CB Consumer Confidence

95.9

94.5

8:30pm

Richmond Manufacturing Index

17

20

Nov 26 7:00pm

Core Durable Goods Orders m/m

0.5%

-0.1%

7:00pm

Unemployment Claims

287K

291K

7:00pm

Core PCE Price Index m/m

0.1%

0.1%

7:00pm

Durable Goods Orders m/m

-0.4%

-1.1%

7:00pm

Personal Spending m/m

0.4%

-0.2%

7:00pm

Personal Income m/m

0.4%

0.2%

8:15pm

Chicago PMI

63.1

66.2

8:25pm

Revised UoM Consumer Sentiment

90.2

89.4

8:25pm

Revised UoM Inflation Expectations

8:30pm

New Home Sales

471K

467K

8:30pm

Pending Home Sales m/m

0.9%

0.3%

9:00pm

Crude Oil Inventories

2.6M

10:30pm

Natural Gas Storage

-17B

Nov 27 All Day

OPEC Meetings

All Day

Bank Holiday

2.6%

GOLD
TECHNICAL VIEW
MCX GOLD showed sideways to
positive movement in whole week but
unable closed above 26500. Now, if it
is able to maintains above 26600 then
next resistance level is seen around
the physiological level of 27000. On
other hand if it sustain below 26000
then again drag towards the support
level of 25200.

PIVOT TABLE
STRATEGY
Better strategy in MCX GOLD is to buy
above 26700 for the targets of 2700027500 with stop loss of 25500.

S1

S2

S3

R1

R2

R3

26000

25500

25000

27000

27650

28200

SILVER
TECHNICAL VIEW
MCX SILVER on daily charts showed
choppy movement in whole week and
unable to maintain above the
trendline. Now, 36700 is act as
immediate resistance for it above
which trendline breakout expected
and may lead it upto 38000. On lower
side closing below 35000 will again
drag it towards the support range of
34000-33000.
F

PIVOT TABLE

STRATEGY
Better strategy in MCX SILVER at this
point of time is to sell below 35000 for
target of 33500, with stop loss of 37000.

S1

S2

S3

R1

R2

R3

35200

34250

33000

36700

38000

39200

CRUDEOIL
TECHNICAL VIEW
MCX Crude oil last week showed
correction on higher side, gave
breakout of 4725 but unable to
maintain above this level and closed
below it. Now, if it breaks the support
level of 4550 and closed below it then
it is in weak zone and may find next
support around 4450. If some
correction occurs and maintains above
4820 then 5000 will act as resistance
for it.

PIVOT TABLE

STRATEGY
Better strategy in MCX CRUDEOIL is to
sell below 4600 for the target of 4400,
with stop loss of 4850.

S1

S2

S3

R1

R2

R3

4565

4400

4250

4820

5005

5200

COPPER
TECHNICAL VIEW
MCX Copper last week broke the
resistance level of 417, found
resistance of trendline but unable to
maintain above it and reverted from
the trendline. Now, 410 is seen as
immediate support for it below which
it drag towards strong support of 403
and may test lower band of channel
i.e. 395. On higher side 418.50 will act
as vital resistance for it above which
425 is next resistance level.

PIVOT TABLE

STRATEGY
Better strategy in MCX COPPER is to sell
below 408, with stop loss of 420 for the
target of 400.

S1

S2

S3

R1

R2

R3

408.80

403.10

398.45

418.20

423.35

429.85

DISCLAIMER

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