Silver Mar Fut has resistance at 58650-59100: GEPL Capital

GEPL Capital has come out with its report on bullions, base metals and energy. According to the research firm, Silver (March future) has support at 58150-57600 and resistance at 58650-59100.

Bullions-

Gold notched its biggest weekly drop this year as an improving global economic outlook sent the safe-haven metal below a key technical support. Bullion fell below its 200-day moving average, which it had held for the most part in the last five months, as U.S. equities measured by the S&P 500 rose for an eighth day for its longest winning streak in more than eight years. Bullion fell below its 200-day moving average, which it had held for the most part in the last five months, as U.S. equities measured by the S&P 500 rose for an eighth day for its longest winning streak in more than eight years. Bullion fell below its 200-day moving average, which it had held for the most part in the last five months, as U.S. equities measured by the S&P 500 rose for an eighth day for its longest winning streak in more than eight years. 

Base metals-

Copper gave some advanced today morning in LME for the first time in four days as data from China, the world’s biggest consumer, added to signs a rebound is gaining momentum and Japan raised its economic outlook, boosting demand for industrial metals. Chinese industrial companies’ profits rose for a fourth month in December, adding to signs the country’s economic rebound is gaining momentum. Japan’s Cabinet Office said today that real gross domestic product will be 2.5 percent in the year to March 31, 2014, upgrading a previous 1.7 percent forecast. Economic reports later this week may show U.S. employers added 160,000 workers to payrolls last month after a 155,000 December increase, while manufacturing is stabilizing, housing is improving and consumers are more confident. The Federal Reserve starts a policy meeting on Jan. 29.  

Energy-

Crude oil prices are steady due to improving sentiment towards global economic growth and geopolitical worries about the key producing region of North Africa following a terrorist attack in Algeria. Prices found further support in lower production from Saudi Arabia, the world's largest oil exporter which cut its output to the lowest in a year in December. Mr Harry Tchilinguirian head of commodity markets strategy at BNP Paribas said that "If anyone doubts Saudi Arabia's resolve, and in particular ability, to reduce production to support prices, that should be a sign. We continue to be less bearish on the oil price than many because we think Arab producers will act to support prices because they have higher fiscal imperatives after the Arab Spring."

Commodity trading strategy:

Gold (February future): support-30250-30140, resistance-30400-30500.

Silver (March future): support-58150-57600, resistance-58650-59100.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click on the attachment

Read More