Commodity Tips For Today 28 July 2011

Business today is on the decline in base metals. In the domestic market because of weak business in all LME metals are traded on the half per cent. Gold and silver are in a position in the dull business.

Commodity NEWS 28 July 2011

Gold prices rose to record highs above $1,625 on Wednesday, with silver and palladium also rallying, as concerns over the prospect of a U.S. default prompted investors to buy precious metals as a haven from risk. Bitterly divided Republicans and Democrats are are scrambling to find common ground with less than a week before the government hits its borrowing limit, with chances of a quick resolution receding after a vote on a deficit plan by Republican Speaker John Boehner was pushed back to Thursday from Wednesday. Failure to lift the debt ceiling by August 2 could trigger a debt default, while a budget plan that flinches from hefty cuts in the deficit could result in a downgrade of the country's top-notch credit rating, analysts said. Spot gold hit a fresh record high of $1,628 an ounce and was up 0.3 percent at $1,623.36 by 1411 GMT. "There is not only uncertainty about a possible downgrade (for the U.S.) but a possible default if the debt ceiling is not increased. That is reflected in gold prices and people are positioning themselves for a worst-case scenario," said Georgette Boele, head of forex and commodities research at ABN Amro. Bullion has gained more than 8 percent in July and has hit six all-time highs in the past ten sessions, as U.S. lawmakers were locked in a standoff over duelling debt plans that offered little prospect for compromise. Source :- Reuters

Oil fell on Wednesday as partisan wrangling over the U.S. debt limit unnerved investors and sent them fleeing from assets perceived to be dependent on growth. Brent fell 33 cents to $117.95 a barrel by 1019 GMT, U.S. oil dropped 58 cents to $99.01, also pressured as an industry report showed crude stocks in the country rose unexpectedly. "The main factor is the debt situation (in the United States), there are fears about growth and the country's AAA rating is under threat," Michael Hewson, analyst at CMC Markets said. A Republican plan to cut the U.S. deficit faced delay and stiff opposition on Wednesday, piling anxiety onto investors and ordinary Americans hoping for a late compromise to avoid a crippling debt default. Source :- Reuters

GOLD Technical Analysis

Market Overview


COMEX Gold is in an upward phase. Last week COMEX Gold sustained above level of 1270$ and made a high of 1301$ an ounce. In the coming week 1260$ will act as a good support in COMEX Gold, if COMEX Gold sustain above 1260$ an ounce then above 1305$ an ounce it can touch the level of 1320$ an ounce and below 1260$ if COMEX Gold sustains then it can slightly correct and test the level of 1240$ an ounce.

Strategy

For the next week traders can use buy on lower level strategy if 

COMEX Gold sustains above 1260$ an ounce, above 1305$ it can 

further go upward and can test the level of 1320$ an ounce. Trade 

by keeping the strict stop losses. 

Major support for COMEX Gold in the coming week would be 

1260$ and 1210$. 

Major resistance for COMEX Gold in the coming week would be 

1310$ and 1335$ 

Major support in MCX Gold is 18500 and 17900 

Major resistance in MCX Gold is 19300 and 19550

SILVER  Technical Analysis 

Market Overview

COMEX Silver is in an upward phase. Last week COMEX Silver 

made a new lifetime high and made close near to its high of 

2149$ an ounce. For the upcoming week 2100$ and 1940$ are 

the crucial supports and 2180 $ is a crucial resistance in COMEX 

Silver.

Strategy

For the next week traders can use buy on lower level strategy if 

Silver sustains above the level of 2100$ an ounce, and above 

2150$ an ounce it can further go upward. Trade by keeping the 

proper stop losses.

CRUDE OIL  Technical Analysis 

Market Overview

NYMEX Crude is consolidating on charts. Last week Crude Oil 

sustained on its week high and made a close near to its high. For 

the coming week 70$ will act as major support and 80$ a barrel 

will be a major resistance.

Strategy

For the next week traders can use sell on higher level strategy, if 

NYMEX Crude does not break the level of 78$ a barrel then below 

the level of 70$ a barrel then it might test the level of 67$ a barrel. 

Trade by keeping the proper stop loss.

COPPER  Technical Analysis 

Market Overview

Copper is in an upward consolidation phase and traders should 

use the strategy of buying on lower levels. If next week COMEX 

Copper sustains above the level of 355 then above the level of 368 

Copper can test the level of 380. In MCX Copper above 372 

Copper can test the level of 383 if it does not break the level of 347 

on the downside.

Strategy

For the upcoming week 368 and 391 will act as major resistance 

and 334 and 316 will act as major supports in COMEX Copper. For 

MCX Copper major resistance would be 372 and 388 and 

supports would be found at 347 and 328.