Crude trades above USD 91/bbl

By Gautam Broker, Research Analyst at CNBC-TV18

Commodity cues

Commodities bounced back on Tuesday. CRB Index gained 1.4% - biggest gain in the last 2 weeks.

Japan said looking to buy 20% of Euro bonds. All eyes are on Portugal's debt auction.

Trans Alaskan Pipeline shutdown continued to support crude oil prices. Statoil shuts 2 fields in North Sea after gas leak. Crude gained 2%; got back above USD 91/barrel. It is currently trading at USD 91.17 a barrel.

EIA Petroleum Status report will be announced today. Experts expect inventories to decline by 1.4 million barrels.

Copper snapped five-day losing streak. Copper saw 4% cut last week, biggest decline in 5 months. It recovered 2% yesterday and was in green this morning supported by strong earnings from US home builders.

Precious metals were too in the green. Gold gained 0.7% and Silver was up 3% in 2 sessions. Palladium gained 4.5%.

Sugar went up over 3% and got back closer to 33 cents/lb.

CommTrendz advised to:

- Buy gold MCX February contract at Rs 20385 per 10 grams, with a target of Rs 20550 and keep a stoploss of Rs 20320.
- Buy crude MCX January contract at Rs 4085 per barrel, with a target of Rs 4168 and keep a stoploss of Rs 4035.