CH Weekly Report On Commodity Market (13/09/10-17/09/10)

Sept. 13, 2010 - PRLog -- MARKET WRAP

            Dollar's sharp gains on yen pressured gold

           Gold ends off, hit by firm dollar

           Copper, aluminum stockpiles continue decline

            Copper suffering its first weekly decline in four weeks

            U.S. crude rose 3 percent to hit a four-week high above $76

Gold turned red after five consecutive weekly gains owing to better US economic data and rising global equity markets. Gold has made a double top and resisted at a new two month high of $1262 and a weekly low of $ 1237 to end at $ 1246. The shine of gold as a safe haven became less in the later part of the week as it shred $ 11 on better than expected US jobless claims data at 451K vs. 470K and lower US trade balance at         (-)42.88B. Gold consolidated this week as market waits for fresh momentum to climb higher as it is in a tight range of $ 1260 - $ 1240. The world’s largest gold back ETF, New York’s SDPR gold trust reported a drop in its holdings by 0.911 tonnes for second consecutive weeks. Its now at 1,293.531 tonnes.  

Copper settled at $ 340 ending the three consecutive weeks’ gains. Copper shred $ 8 after resisting at $351.88 and touched weekly low of $ 338.   Base metals melt down after as Chinese government clamps down on property speculation, shutters energy-intensive factories and limits lending led by liquidation in Shanghai zinc where open interest fell 10 percent. On an average, metals on LME slumped by 3 percent with rising dollar against euro supported weak trend. The latest data of Chinese industrial production came better than expected at 13.9% vs. 13.1% while its consumer prices rose 3.5%. This economic data may support the falling copper in the coming week.  

TECHNICAL VIEW

GOLD
WEEKLY PIVOT

SCRIPT   R4   R3   R2   R1   P   S1   S2   S3   S4
GOLD   1325   1299   1274   1260   1248   1234   1222   1197   1171

OUTLOOK
        Trend:- Bullish
     Resistance:- 1264,1290$
     Support:- 1225,1192$
     Strategy:- Buy on dips

SILVER
WEEKLY PIVOT

SCRIPT   R4   R3   R2   R1   P   S1   S2   S3   S4
SILVER   21.59   21.01   20.43   20.14   19.85   19.56   19.27   18.69   18.11

OUTLOOK
        Trend:- Bullish
     Resistance:- 20.15,20.85$
     Support:- 19.45,18.90$
     Strategy:- Buy on dips

CRUDE
WEEKLY PIVOT

SCRIPT   R4   R3   R2   R1   P   S1   S2   S3   S4
CRUDE   87.5   83.4   79.4   78.0   75.3   73.9   71.2   67.1   63.1

OUTLOOK
        Trend:- Consolidate
     Resistance:- 77.50,82.90$
     Support:- 72.30,69.70$
     Strategy:- Buy on dips

NATURAL GAS
WEEKLY PIVOT

OUTLOOK
        Trend:- Consolidate   
     Resistance:- 4.130,4.490$
     Support:- 3.680,2.970$
     Strategy:- Sell on high

COPPER
WEEKLY PIVOT

SCRIPT   R4   R3   R2   R1   P   S1   S2   S3   S4
COPPER   383.5   370.2   356.8   348.4   343.5   335.1   330.1   316.7   303.4

OUTLOOK
        Trend:- Consolidate
     Resistance:- 349,365
     Support:- 337,323
     Strategy:- Buy on dips

USD/INR
WEEKLY PIVOT

SCRIPT   R4   R3   R2   R1   P   S1   S2   S3   S4
INR   48.61   47.89   47.17   46.71   46.45   45.99   45.73   45.01   44.29

OUTLOOK
        Trend:- Consolidate
     Resistance:- 47.15,48.10
     Support:- 45.80,45.10
     Strategy:- Sell on high

# # #

CapitalHeight Financial Services is a leading Financial Advisory Company with a strong presence among all Stock Brokers & Traders.