Initial Jobless Claims and Commodity Trading

1
Initial Jobless Claims and Commodity Trading
Gold Commodity Intraday trading has no major
changes in Bullion fundamentals as markets
continue to wait for fresh triggers in a week
which lacks any major economic cues. We feel
there is a possibility of good move in next two
days as there are few economic readings from the
US and also a number of US FED Managers are going
to speak at different events. Hopes of
earlier than estimated rise in interest rates
is one of the major reasons behind
continued weakness in Gold lately. While,
we look at the volume and open interests
along with price performance both the
variables are supportive of the bearish
trend so we recommend selling from higher
levels. ThoughSPDR ETF holdings rose by 3MT
yesterday, they largely remain unsupportive. We
recommend selling from higher levels
today. Global Market View Major global
equity markets ended last day with a
minute change while Asian markets are trading
slightly positive today. Therefore, we may see
the local unit opening higher against the USD
while we believe during the day it may again
depreciate a tad. From the global currency front,
markets are more or less stable. The USD
index is trading at 84.24, euro is at
1.2915and the pound sterling is at 1.6198.Now,
we move on to commodities, both gold and silver
which fell again last day are seen trading steady
at 1249 and18.96. The Oil is trading at 91.75
and the base metals are trading steady from the
previous days close. Gold extended another
day of range bound trade in the
international markets though bias remained
weaker both at the Commodity and MCX. Gold
Commodity Dec contract fell 0.25percentage to
1245 an ounce whereas at MCX, October expiry
metal fell 0.3percentage to Rs 27180 per 10
Gms. Economic data German CPI at 11 30 AM IST,
US Weekly Jobless Claims numbers at 6 PM IST and
the Monthly budget statement. Silver Commodity
trading has no major changes in silver commodity
as also been the case with gold as stated above.
We continue to hold a bearish bias in the two
metals. Re-iterating our yesterdays view silver
is managing better performance than gold in last
two-three days which is not significant though
makes us cautious as either there is some
internal positivity which is not updated in
markets or
2
otherwise we should see strong sell-off in
the commodity sooner. We hold sell stance
in Intra-day whereas continue to be on the
sidelines on our view over Ratio. Silver was no
different in terms of intraday performance
yesterday though the whitish metal continue to
manage tads better performance as compared
to gold, as been the case during most of
this week. Commodity December Silver closed
unchanged yesterday at 18.92 an ounce whereas
Indian Silver for same months settlement too
closed flat to Rs 41950 per Kg. Commodity
Trading Tips Sell Silver mcx Dec below 42070 SL
41300 Tgt- 41700 Sell Gold mcx Oct below 27280 SL
27370 Tgt - 27100