- Created: Monday, 12 January 2015 11:18
Precious metal: Gold prices traded higher on Friday, but gains were expected to remain limited as data on U.S. initial jobless claims released on Thursday pointed to an ongoing recovery in the labour market. Strong data could also prompt the Fed to increase interest rates sooner rather than later, hurting non-interest-bearing bullion. However, minutes from the Fed's latest policy meeting released on Wednesday indicated that the central bank was in no hurry to raise interest rates.
Over all, MCX Gold February future is in consolidation and sustaining on lower levels from the last week. For the coming week 26500/26200 will act as a major support whereas 27500/27900 will act as a major resistance level in MCX Gold February future. For the next week in MCX Gold, traders can use buy on lower level strategy, if MCX Gold February future sustains above the levels of 27100 then it could test the levels 27300/27500.
Technically, MCX Silver March futures is in consolidation and sustaining on lower levels. So for the coming week 39800/41000 will act as a major resistance levels where as 36000/34700 will act as major support in MCX Silver March futures. For the next week in MCX Silver futures, traders can use buy on lower level strategy, if MCX Silver March futures sustains above 37300 then it could test the levels of 38500/39800.
Oil prices headed for a seventh straight weekly loss on Friday, with key producers showing no sign of cutting output in the face of a global supply glut.
U.S Crude futures for February delivery were down 12 cents at $48.67 a barrel despite robust U.S. Economic data that brightened the outlook for demand. Supply concerns remained as Saudi Arabia and its Gulf OPEC allies are showing no sign of considering cutting output to boost oil prices even as demand slows globally.
For the coming week 2700/2500 will act as major supports levels whereas 3200/3500 will act as a major resistance in MCX Crude oil January futures. For the next week, trader can use sell on higher level strategy, if MCX Crude January future sustain below 2980 levels then it could test the levels 2850/2700.
Copper slumped to 20-month low on Friday on subdued demand following weaker than expected economic data from China and Germany and on higher inventories of the metal, Prices fell on weak demand after China's producer price index in December month plunged to five year low its lowest since September 2009. Other metals prices also supported on expectations of upbeat US non-farm payroll data which will boost sentiment of improving labour market in the world's biggest economy.
Growth in the labour market of the country could prompt the Federal Reserve of United States to raise rates sooner than expectation. Investors are hoping higher rates could improve demand of the base metals, in the world's biggest economy.
Trend of MCX Copper February future is in consolidation and sustaining in range. So for the coming week 398/420 will act as a major resistance levels where as 350/332 will act as major support in MCX Copper. For the next week trader may follow sell on higher levels strategy, if MCX Copper February future sustain below 377 levels then it could test the level of 365/350.