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R
EE E K L Y
P
O
Blow by Blow
On
R
Bullions,
T
Base metals,
25 MAY 29 MAY 2015

Energy

MAJOR EVENTS
Gold eased on Friday, on course for its first weekly decline in four weeks, after U.S.
Federal Reserve Chair Janet Yellen said she expected an interest rate hike this year.
The dollar extended gains following the speech, after initially climbing on a strongerthan-expected rise in U.S. core consumer prices in April. Yellen said she expected the
central bank to raise rates this year as the U.S. economy was on course to bounce
back from a sluggish first quarter and as headwinds at home and abroad begin to
wane.
Spot gold, higher initially, fell 0.1 percent to $1,204.72 an ounce by 3 p.m. EDT (1900
GMT). It was down 1.6 percent for the week. U.S. gold futures for June delivery were
little changed, settling down 10 cents at $1,204 an ounce. The market was quiet
ahead of public holidays on Monday in Britain and the United States. The dollar rose 1
percent versus a basket of leading currencies, initially buoyed by data that showed the
U.S. Consumer Price Index rose 0.1 percent last month, while core CPI, which strips
out food and energy costs, increased 0.3 percent, the largest gain since January 2013.
Crude oil settled up 1.02% just under $59 as prices recovered snapping a five-day
losing streak to end higher on Wednesday after official data from the EIA showed
crude stockpiles in the U.S. to have declined more than expected last week, although
production continued to remain firm.This morning crude oil added 9 cents to 59.07
and Brent oil added 39 cents to 65.19 both remaining under their highs earlier this
week. Oil edged up on Thursday, supported by a drawdown in U.S. crude inventories
although weak China data and concerns about excess oil supply capped price gains.
Chinas manufacturing sector contracted for a third straight month in May, hitting the
lowest in 13 months, despite earlier reassurance from Chinese Premier Li that the
worlds second largest economy can meet its 7 percent growth target this year.Crude
oil inventories dropped 2.7mbls in the week ended May 15, while markets expected a
decline of 2mbls. The report showed WTI crude oil inventories at 482.2mbls end last
week. This is the third straight week of crude oil inventories decline.U.S. remained
firm at 8.87mbls a day. Gasoline stocks dropped 2.8mbls last week, Inventories of
distillate, including heating fuel, dipped 546,000 barrels.
Copper prices got hit by the worries of Chinese demand that sucked the necessary
steam from the metal. The prices dipped below Rs 400 in domestic exchanges while
tripped to a three week low in International exchanges. The bears have lashed on the
opportunity to book profits in the metal after the Chinese import numbers dejected
the prices.
The industrial metal touched a three-week low of $6,194 on Wednesday, pressured by
a strong dollar which is on course to snap a five-week losing run against a basket of
currencies. A firmer dollar makes dollar-denominated commodities such as copper
costlier for buyers using other currencies. The dollar finished lower against its main
rivals Thursday, snapping three days of gains, after a trio of weak economic reports
added to concerns about the timing of the Federal Reserve's first interest-rate increase
since 2006. China's imports of unwrought copper and copper alloy were 380,000
tonnes in April, taking imports in the first four months of the year to 1.35 million
tonnes, down 14.7 percent from a year ago.Indian Copper prices declined to Rs 396
per kg, down 1.9%. The prices of MCX Copper tested a high of Rs 403.6 per kg and a
low of Rs 394.65 per kg.

Gold falls as
Yellen points to
rate hike, dollar
jumps.

Oil Fundamentals
Remain
Unchanged As
Prices Bounce

Copper Challenged
By The Worries On
Chinese Demand.

ECONOMIC CALENDER
DATE & TIME

DESCRIPTION

FORECAST

PREVIOUS

May 25 All Day

Bank Holiday

8:30pm

FOMC Member Fischer Speaks

May 26 6:00pm

Core Durable Goods Orders m/m

0.5%

0.3%

6:00pm

Durable Goods Orders m/m

-0.4%

4.7%

6:30pm

HPI m/m

0.7%

0.7%

6:30pm

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

4.6%

5.0%

7:15pm

Flash Services PMI

57.0

57.4

7:30pm

CB Consumer Confidence

95.3

95.2

7:30pm

New Home Sales

501K

481K

7:30pm

Richmond Manufacturing Index

-3

10:00pm

FOMC Member Fischer Speaks

May 27 5:40am

FOMC Member Lacker Speaks

Day 1

ALL

G7 Meetings

May 28 11:50am
Day 2

ALL

FOMC Member Williams Speaks

G7 Meetings

6:00pm

Unemployment Claims

272K

274K

7:30pm

Pending Home Sales m/m

0.8%

1.1%

8:00pm

Natural Gas Storage

92B

8:30pm

Crude Oil Inventories

-2.7M

May 29 Day 3

ALL

G7 Meetings

6:00pm

Prelim GDP q/q

-0.9%

0.2%

6:00pm

Prelim GDP Price Index q/q

-0.1%

-0.1%

7:15pm

Chicago PMI

53.1

52.3

7:30pm

Revised UoM Consumer Sentiment

90.0

88.6

7:30pm

Revised UoM Inflation Expectations

2.9%

GOLD
TECHNICAL VIEW
MCX GOLD showed bearish movement,
and took reversal from trendline and
closed
around
its
important
psychological support level of 27000.
Now, if it is able to sustain below
27000 then next major support level is
seen in the range of 26750-26500. On
other hand maintaining above 27400
bullish movement may move it
towards the resistance level of 27750.

PIVOT TABLE
STRATEGY
Better strategy in MCX GOLD is to sell
below 27000 for the target of 26500
with stop loss of 27750.

S1

S2

S3

R1

R2

R3

26950

26635

26350

27365

27685

28000

SILVER
TECHNICAL VIEW
MCX SILVER on daily charts showed
downward movement and after found
the important resistance of 40600 it
drag towards the support level of
39000 and closed below it. Now, if it
sustain below 38500 then next support
level may seen at 37500. On higher
side maintaing above 39600 will again
pull it towards the resistance level of
40600.

STRATEGY
Better strategy in MCX SILVER at this
point of time is to sell below 38450 for
the targets of 37450-37000, with stop
loss of 40600.

PIVOT TABLE
S1

S2

S3

R1

R2

R3

38490

37500

36650

39550

40600

41500

CRUDEOIL
TECHNICAL VIEW
MCX Crude oil last week showed
sideways movement but not able to
sustain below 3715 and closed around
3800. Now, if it sustain below 3700 in
coming sessions then next important
support level is seen around 3570. On
the other hand 3850 will act as
important resistance level above which
again it will move towards the
resistance level of 4000.

PIVOT TABLE

STRATEGY
Better strategy in MCX CRUDEOIL is to
sell below 3700 for the target of 3500,
with stop loss of 4000.

S1

S2

S3

R1

R2

R3

3715

3570

3425

3900

4000

4140

COPPER
TECHNICAL VIEW
MCX Copper last week showed
downward movement and gave the
breakout of its important support level
of 410 closed around its important
support level of 395. Now, if it sustain
below 390 on lower side next
important support level is seen around
380. On the other hand if it maintains
above the resistance level of 405 then
it will pull back towards the next
resistance level of 415.

PIVOT TABLE

STRATEGY
Better strategy in MCX COPPER is to sell
below 390, with stop loss of 405 for the
targets of 380.

S1

S2

S3

R1

R2

R3

389.80

379.20

368.80

404.35

413.20

423.35

DISCLAIMER

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