After celebrating half year of prosperity, the metal is now witnessing a price-wise correction. However, this is just a breather and part of a healthy trend.
Though 2015 saw a massive correction in hard commodities, 2016 may see some of these commodities bottoming out.
Not all is negative for gold, though it‘s also difficult to affirm that it will boom immediately from here on.
A close look at the price set up echoes a phase of recovery in prices, as prices look to move out of the shackles of the bear camp.
Rupee has breached its major support level of 66 to a dollar, couple of days back. The overall fashion in which the rupee has declined, leaves room for further weakness in the Indian currency.
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The markets look to have digested the negative news, and the prices might stabilize. However, in case of any currency devaluation spree, prices may get a further beating.
Drop in consumption demand and safe have demand has led to demand side pressure on the prices of gold. Suppliers too have cut down on mining costs, which ensures supply even at lower price.
Levels of around Rs3100 a barrel at MCX appear to be the likely end of bear selling.
Sugandha Sachdeva of Relicare says even though everybody is looking at interest rate cut to revive growth, which is still very close to 5 percent mark, a now depreciating rupee can see further outflow from Indian economy. That is the major reason why RBI is restraining itself from cutting interest rates.
N Prasad of Safetrade Advisors advocates buying MCX crude. Prasad says, "Keep a stop loss for this trade at Rs 6,430 per barrel for a target is of Rs 6,560 per barrel".
Dharmesh Bhatia of Kotak Commodities suggests buying MCX gold. Place a stop loss for this trade at Rs 27,400 per 10gm for a target of Rs 28,300-28,500 per 10gm.
Reena Rohit of Angel Broking advises buying MCX crude with a stop loss at Rs 6,260 per barrel for a target of Rs 6,424 per barrel.
Commodity experts are upbeat on crude, gold, zinc and lead, they advise buying them.
Commodity experts are upbeat on crude and natural gas, they advise buying them. However, they are not so bullish on copper, hence suggest selling it.
Commodity experts are not so upbeat on copper, lead and nickel, they advise selling them.
Sugandha Sachdeva of Religare Commodities recommends selling gold on MCX. "Maintain a stop loss for this trade at Rs 28,350 per 10gm for a target of Rs 27,600 per 10gm", Shah adds.
Commodity experts are not so upbeat on nickel and silver, they advise selling them. However, they expect crude to go high, hence suggest buying it.
Commodity experts are upbeat on crude, copper & gold, they advise buying them. However, they expect selloff in lead till Rs 117 per kilogram, hence suggest selling it.
Sugandha Sachdeva of Religare Commodities advocates selling MCX crude around Rs 5,265 per barrel levels. Sachdeva says, "Keep a stop loss for this trade at Rs 5,320 per barrel for downside target of Rs 5,090 per barrel".
Ram Pitre of Anand Rathi Commodities advises selling crude on MCX at Rs 5,360 – 5,370 per barrel with a stop loss at Rs 5,385 per barrel and a target of Rs 5,265 per barrel.
Ram Pitre of Anand Rathi Commodities recommends selling crude between Rs 5,360 per barrel and Rs 5,370 per bbl with stop loss of Rs 5,400 per bbl for target price of Rs 5,250 per bbl.
Priyank Upadhyay of SSJ Finance & Securities recommends selling copper around Rs 398 per kilogram with stop loss above Rs 402 per kilogram and target around Rs 390-387 per kilogram.
Sugandha Sachdeva of Religare Commodities suggests going short on zinc MCX April series at levels of around Rs 104.5 per kilogram, keeping a stop in place at Rs 106 per kilogram and prices are likely to drift lower towards Rs 101.6-101.8 per kilogram in near term.
Renisha Chainani of Edelweiss recommends buying copper around Rs 410 per kilogram with stop loss of Rs 407 per kilogram and target of Rs 415 per kilogram on the higher side.