Weekly Commodity News Letter-Star India Market Research

Gold prices maintained their gains in American trade, heading for the first daily gain in three days on short-covering, after hitting a four-week lower earlier, while demand climbs on the metal as a safe haven amid renewed North Korea tensions,

COMMODITY OUTLOOK 

Gold:-

The trend of Gold is Bullish. Precious metals remain supported this week with gold up nearly 3.5% this week; it’s a best weekly gain for gold in two years due to continues weakness in Dollar. As Dollar is the biggest driver of the precious metal, thus it will remain in focus for the near term. A further weakness in Dollar can lead the Gold price much higher. Buy on dips strategy can be follow for this week. 

Natural Gas :-

 Natural Gas can remain choppy with negative bias. After the expectation of lower temperature, the expectation of the lower demand of gas and further more slide of the inventory changed the prices a bit. The prices can expect to remain sideways for this week. Sell on high strategy would be better to follow.

Crude:-

The crude oil can remain choppy with positive bias due to weak Dollar. Middle east country Saudi also verbally support the prices by quoting that the supplies will be less in this week. US Inventory Data also supported the price. In Asia, the demand has been increasing and even India had to import a record 4.93 million barrel/day in January. Crude oil can find some resistance at higher level due to the higher expectation of shale crude production in March. Sell on high strategy can be follow. 

Copper:

The Trend of Copper is Bullish.  Weak Dollar and strong inflation data lead the base metals prices higher this week. Weak Dollar leads the expectation of higher global demand for the copper lead the rally in Copper for 5 consecutive days. The strategy of Buy on Dips can be follow for this week. 

Aluminum:-

The trend of Aluminium is bullish. Weak Dollar and higher stockpiles of LME Aluminum lead the prices higher this week. Weak Dollar leads the expectation of higher global demand for the hard metals. LME Aluminium stocks rose by 31275 tonnes, to a total of 158925 tonne increase, and ended at the biggest weekly gain since May 2009. Some spikes have been triggered in the prices due to the closing of China Markets.  Buy on Dips would be better to follow in this week.