Expect Gold to trade with a positive bias this week: Angel

Angel Commodities has come out with its weekly tracker report on Gold, Silver, Copper and Crude Oil According to the research firm, during the week gold prices are expected to trade with a positive bias on the back of rise in risk aversion in the global markets.

GOLD

Weekly Price Performance

• On a weekly basis, gold prices gained around 3.5 percent on the internationalmarkets and around 3 percent on theMCX.
• The yellow metal touched a high of $1629/oz and closed its trading session at $ 1625/oz last week.

ETF Performance

• Holdings in the SPDR Gold Trust, the world's largest gold-backed exchangetraded fund, declined around 0.3 percent to 1,273.88 tonnes on 1st June 2012 from the previous level of 1,270.26 tonnes on 25th May 2012.

Factors that influenced gold prices

• In the last week, surge in gold prices was seen as heightening concerns led to an emergence of safe-haven demand. However, this cannot be attributed to a shift in fundamental factors driving the commodity.
• If this trend of safe-haven buying continues in the near-term , only then will gold witness support and the commodity will perform in the opposite direction to that of risky assets.

Outlook: During the week we expect gold prices to trade with a positive bias on the back of rise in risk aversion in the global markets. This could lead to safe haven demand for gold. However, in the Indian markets prices will gain further on account of depreciation in the Rupee.

Weekly Technical Levels

• Buy MCX Gold August between 29,700-29650, SL-29300, Target - 30500/31000.(CMP: 29,984)
• Spot Gold : Support 1595/1560 Resistance 1660/1694. (CMP: 1619.45)

SILVER

Outlook: Silver is expected to trade on a mixed note in the international markets, taking mixed cues from rise in gold prices on one hand and pressure in base metals on the other. But in the domestic markets, silver is expected to trade higher due to weakness in the Rupee.

Weekly Technical Levels

• Buy MCX Silver July between 54100-54000, SL-53190, Target - 55400/56050. (CMP: 54,172)
• Spot Silver : Support 28.14/27.45 Resistance 29.10/29.74 (CMP: 28.36)

COPPER

Outlook: During the week, we expect copper to trade lower on account of constant rise in LME inventories over few weeks coupled with rise in risk aversion in the globalmarkets.

Weekly Technical Levels

• Sell MCX Copper June between 406-407, SL-416, Target -390/385.(CMP: 401.0).
• LME Copper: Support 7170/7005 Resistance 7470/7635. (CMP: 7340)

CRUDE OIL

Outlook: Crude oil is expected to trade on a negative note during the week as rise in supply output from the OPEC countries, increasing crude oil inventories along with rise in risk aversion in the global markets will add pressure on prices.

Weekly Technical Levels

• Sell MCX Crude May between 4760-4780, SL-4870, Target -4540/4450.(CMP: 4546)
• Nymex Crude Oil: Support: 79.60/76.0 Resistance 85.90/89.60 (CMP: 81.80)

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