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Commodity Snapshot Report dated - 07th February, 2013
- MCX Gold may note some gains tracking cues from international exchange however upside is limited. COMEX gold has edged up as pause in equity market gains increased demand for safe haven assets. However weakness in commodities and strength in US dollar limited upside in gold price. Strength in platinum price is offset by concerns about Indian demand. Gold may trade in a narrow range as it continues to remain in a conundrum of being a safe haven asset or a commodity. Focus today will be on UK and German industrial production, Spanish bond sale, BOE and ECB meet and US jobless claims. Support for MCX Gold April contract is seen at Rs.30500 while Resistance is seen at Rs.30950.
- MCX Silver may trade under pressure but rangebound movement is expected. Supporting silver price is modest gains in gold and platinum price. However firmness in US dollar has limited upside in commodities in general. Also weighing on silver price is slack ETF interest and higher stocks at CME warehouses. Any move above $32/oz may also trigger some profit taking. Support for MCX Silver March contract is seen at Rs.57800 while Resistance is seen at Rs.58950.
- MCX Copper may open higher tracking range bound movement in international markets however the bias remains weak. LME Copper is trading slightly lower in early trades today amid weak demand in China's spot market coupled with rising stocks at exchange warehouses. Stocks at LME rose by 1450 tonnes yesterday after gaining by 33100 tonnes last week and were near December 2011 levels high. Also putting pressure on the prices is slight firmness in US Dollar and choppiness in global equities. The downside may however be capped amid signs of improving pace of global economic growth. Prices will further track economic releases and its impact on global equity and currency markets. As for today, focus will be on Bank of England and ECB interest rate meet, German Industrial Production and US Initial Jobless claims. Support for February copper is seen at Rs.436 while Resistance is seen at Rs. 444.
- MCX Aluminum may open higher tracking range bound movement in international markets however the bias remains weak. Putting pressure on the prices is higher production coupled with near record stocks at LME however higher cancel warrants ratio and rising premium in US spot market may cap the downside. Stocks at LME fell by 10450 tonnes yesterday but were near record high of 5241525 tonnes hit on 21st Dec while cancel warrants stood above 39%. Support for Aluminum February contract is seen at Rs.109 while resistance of Rs.112.
- MCX Zinc may note some decline tracking international exchange. Weighing on prices is excess supply in physical markets. According to the latest monthly bulletin of International Lead and Zinc Study Group (ILZSG), the global zinc market was in surplus by 267,000 tonnes in the first 11 months of 2012. The downside may however be capped amid recent decline in stocks at LME coupled with higher cancel warrants ratio and expectation of robust imports from top consumer China. Stocks at LME fell by 2600 tonnes yesterday while cancel warrants stood above 55%. Support for MCX Zinc February contract is seen at Rs.113 while Resistance is seen at Rs.116.
- MCX Nickel may note some decline tracking international exchange. Weighing on prices is higher stocks at LME warehouses coupled with higher surplus in physical markets. Stocks fell by 162 tonnes yesterday after gaining by 684 tonnes last week and were near highest level since April 2010. Also according to the latest monthly bulletin from Lisbon-based International Nickel Study Group (INSG), the global nickel market was in surplus by 68,000 tonnes in the first eleven months of 2012. Support for MCX Nickel February contract is seen at Rs. 960 while Resistance is seen at Rs. 990.