BULLION – Gold shined the brightest in the past week, touching its new highs following heightened uncertainties, weak US economic numbers, and dovish central bank policies. US unemployment data remained stable, but the metal got a good push as US labor report recorded a very disappointing non-farm payroll data. Only 75K jobs were added against expectations 185K jobs. Although we can see a stable movement in the metal for a while as the US-Mexico trade war eased off as both the countries negotiated their terms and Mexico agreed to deploy security forces to stop the flow of illegal Central American migrants. Updates on the same might give slight jerks to the market. After a weak US economic numbers all eyes will be on the Fed policy meet that is scheduled for next week. SPDR Gold Trust said its holdings fell 0.15% to 756.42 tonnes on Friday from 757.59 tonnes on Thursday. MCX Silver prices were more than 1% percent positive on Friday trades. On the daily chart, price has given Falling Channel breakout, where it has moved above upper Bollinger band formation. Moreover, price has shifted above 50 days EMA on the daily timeframe, which indicates bullish trend in the counter.
ENERGY- MCX Copper prices were highly volatile during the last day of the week and closed the day with loss of 1%. On a weekly timeframe, price has given rising trendline breakdown and sustained below it, which indicates down trend in the counter. Moreover, price has moved below 21 DEMA, which suggest bearishness for near term. Furthermore, a momentum indicator RSI (14) and MACD has shown negative crossover, which intimate southward move in the prices. Hence, we expect bearish move for the day. MCX Zinc has recovered almost 1% on Thursday session. On the daily chart, price has sustained below trendline breakdown. Moreover, price has slipped below 50 DEMA and 21 days SMA, which indicates medium term trend remain bearish. On a weekly timeframe, price has moved below parabolic sar, which suggest downward move in the counter. A momentum indicator RSI and MACD has shown negative crossover on the daily chart; which adds more bearishness to the price. Hence, we are expecting bearish movement for the day.
BASE METAL – Crude Oil prices jumped more than 4% on Friday after a report that Washington could postpone trade tariffs on Mexico and amid signs that OPEC and other producers may extend their supply cuts. On the daily timeframe, Crude oil price has been moving below Rising Channel breakdown from last couple of days. Moreover, price has sustained below 50 days DEMA, which indicates bearish trend for medium term. Additionally, a momentum indicator RSI (14) and MACD has shown further weakness. So based on the above structure, we are expecting downward move for the day.
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