Sell MCX Gold June around Rs 29450; target Rs 29200: Geojit

Technical Updates:
MCX Gold June : Sell around 29450 levels with a stop loss placed above 29550 levels for targets of 29200 levels.

MCX Silver May : Sell around 51000 levels with a stop loss placed above 51600 levels for targets of 50000 levels.

MCX Crude April : Sell around 5290 levels with a stop loss placed above 5330 levels for targets of 5220 levels.

MCX Natural Gas April : Sell around 217 levels with a stop loss placed above 220 levels for targets of 211 levels.

MCX Copper April : Sell around 406 levels with a stop loss placed above 409 levels for targets of 402 levels.

MCX Nickel April : Sell around 890 levels with a stop loss placed above 902 levels for targets of 870 levels.

MCX Lead April : Sell around 112 levels with a stop loss placed above 113 levels for targets of 110 levels.

MCX Zinc April : Sell below 100 levels with a stop loss placed above 101 levels for targets of 98 levels.

MCX Aluminium April : Sell around 102 levels with a stop loss placed above 103 levels for targets of 100.50 levels.

MCX Gold June has support at Rs 29200/10gms: IIFL

IIFL has come out with its report on global commodity update. According to the research firm, for gold prices, USD 1,550 seems to be a crucial support level, whereby a breach of the same can drift the prices towards USD 1,520/ounce.

Precious metals are trading on a weak note, as global investoRs seem to be flocking to surging equities. With US equities trading on a firm note, there could be relentless pressure on the precious metals in the short run. Amongst the pack, silver seems to be more vulnerable as there is substantial deterioration on the charts. Silver prices are well poised to move lower towards USD 26/ounce. For gold prices, USD 1,550 seems to be a crucial support level, whereby a breach of the same can drift the prices towards USD 1,520/ounce.

MCX Gold (June)Price indication: Prices have support at Rs 29,200/10gms and resistance at Rs 29,650/10gms.

MCX Silver (May)Price indication: Prices have support at Rs 49,850/kg and resistance at Rs 53,350/kg.

Base metals

LME base metals continue to tread lower, in light of expansion in supply, mounting stockpiles and doubts about end-user demand in China, the world’s largest metal’s consuming nation. Copper prices have breached the crucial support of USD 7,500/ton and can retest the 2012 low of USD 7,219/ton. Strengthening US dollar is also weighing on the complex. US dollar index has rebounded back above 83, deriving cues from improving macroeconomic tone in US.

MCX Copper (April)Price indication: Prices have support at Rs 400/kg and resistance at Rs 415/kg.

MCX Zinc (April)Price indication: Prices have support at Rs 99.2/kg and resistance at Rs 102/kg.(moneycontrol

MCX SILVERM prices slip 22% in June series so far

SILVERM prices on MCX were down marginally. At 13:53 hrs MCX SILVERM April contract was trading at Rs 50685 down Rs 60, or 0.12 percent. The SILVERM rate touched an intraday high of Rs 51100 and an intraday low of Rs 50555. So far 30304 contracts have been traded. SILVERM prices have moved down Rs 13394, or 20.90 percent in the April series so far.
At 13:53 hrs MCX SILVERM June contract was trading at Rs 51722 down Rs 59, or 0.11 percent. The SILVERM rate touched an intraday high of Rs 52170 and an intraday low of Rs 51601. So far 2753 contracts have been traded. SILVERM prices have moved down Rs 14563, or 21.97 percent in the June series so far.

At 13:52 hrs MCX SILVERM August contract was trading at Rs 52821 down Rs 88, or 0.17 percent. The SILVERM rate touched an intraday high of Rs 53190 and an intraday low of Rs 52747. So far 196 contracts have been traded. SILVERM prices have moved down Rs 4341, or 7.59 percent in the August series so far.

Gold hits 10-month low on selloff to cover equity losses

Gold dropped to a 10-month low on Thursday as investors cashed in the precious metal to cover steep losses in equities after disappointing U.S. economic data.
Gold, a traditional safe haven, also failed to capitalise on tensions in the Korean peninsula, where North Korea has moved what appears to be a mid-range missile to its east coast, according to South Korea's Yonhap news agency.

Gold fell as far as $1,541.14 an ounce, its lowest since May, and stood at $1,551.61 by 0557 GMT, down $5.74. It rallied to a 1-month peak in March on worries about fiscal stability in Europe, as politicians scrambled to clinch a bailout for Cyprus.

"The environment for gold is pretty bearish now. I think if gold tests the lower trend channel, it has the potential to drop to the $1,530 level," said Joyce Liu, an investment analyst at Phillip Futures in Singapore.

"As for North Korea, I think investors are seeing the threats more like a joke. They are not reacting as if North Korea is really going to launch a nuclear-loaded missile. Funds are moving out of gold because there's less need for a safe haven."

U.S. gold for June delivery fell $2.20 an ounce to $1,551.30, while other precious metals also dropped sharply.

Silver tumbled to its lowest level since July last year, platinum dropped to its lowest since late August, and thinly-traded palladium was at a two-week trough.

Tokyo gold futures declined as much as 2.1 percent before paring some losses as the weaker prices ignited buying from speculators in Japan. Premiums for gold bars in Tokyo edged up to 50 cents an ounce to spot London prices from zero earlier this week.

"The general public is buying. But I don't think the Japanese people have much interest in the developments in North Korea," said a physical dealer in Tokyo.

Stocks fell in Asia on Thursday after weak data stoked concerns that a key American jobs report due later in the week will signal slowing U.S. growth.

The 25-day inverse correlation between gold and the S&P 500 index was at negative 0.2 after strengthening to negative 0.5 on April 2 -- the strongest link since September 2011.

US companies hired at the weakest pace in five months in March as recent strong demand for construction jobs evaporated, while growth in the vast services sector slowed, signs that the economic recovery could be hitting a soft patch.

Markets will be on tenterhooks until Friday's release of the broader government payrolls report for March that would give a fairer assessment of the U.S. jobs market.

Signs of economic improvement could prompt the U.S. Federal Reserve to halt its bullion-friendly bond-buying programme earlier than expected.

Fears that central banks' money-printing to buy assets will stoke inflation have been a key driver in boosting gold, which rallied to an 11-month high in October last year after the Fed announced its third round of aggressive economic stimulus

"The gold price is, in our view, in bubble territory. Investors have pushed the gold price sharply higher over the past 10 years with the past five-year rally driven by fears that aggressive central bank quantitative easing would lead to very high inflation," Societe Generale said in a report.

"But inflation has so far stayed low and now we are beginning to see the economic conditions that would justify an end to the Fed's QE, fiscal stabilisation that has passed its inflection point and a US dollar that has begun trending higher."

Sell MCX Gold June around Rs 29450; target Rs 29200: Geojit

Geojit Comtrade has come out with its report on metals and energy. According to the research firm, one can sell MCX Gold June around Rs 29450 levels with a stop loss above Rs 29550 for a target of Rs 29200 levels.

Technical Updates:
MCX Gold June : Sell around 29450 levels with a stop loss placed above 29550 levels for targets of 29200 levels.

MCX Silver May : Sell around 51000 levels with a stop loss placed above 51600 levels for targets of 50000 levels.

MCX Crude April : Sell around 5290 levels with a stop loss placed above 5330 levels for targets of 5220 levels.

MCX Natural Gas April : Sell around 217 levels with a stop loss placed above 220 levels for targets of 211 levels.

MCX Copper April : Sell around 406 levels with a stop loss placed above 409 levels for targets of 402 levels.

MCX Nickel April : Sell around 890 levels with a stop loss placed above 902 levels for targets of 870 levels.

MCX Lead April : Sell around 112 levels with a stop loss placed above 113 levels for targets of 110 levels.

MCX Zinc April : Sell below 100 levels with a stop loss placed above 101 levels for targets of 98 levels.

MCX Aluminium April : Sell around 102 levels with a stop loss placed above 103 levels for targets of 100.50 levels.(http://www.moneycontrol.com/news/brokerage-recos-commodities/sell-mcx-gold-june-around-rs-29450-target-rs-29200-geojit_846191.html)

Silver prices trading lower in major cities in India

Silver prices were trading lower in major cities in India. In Delhi market, Pure silver (999 purity) was down by Rs 1950 to Rs 51250 and in Ahmedabad market, it was down by Rs 1865 to Rs 51260.

Spot Silver Rates for 1 KG in major metros in India:

City	Silver 999	Change (Rs)
Mumbai (Apr 03)	52570	-1465
Ahmedabad (Apr 03)	51260	-1865
Chennai (Apr 03)	51700	-1500
Delhi (Apr 03)	51250	-1950
Jaipur (Apr 03)	51400	-1700

 

Sell Crude oil on rally,

Crude oil prices ended higher yesterday, tracking rising global equity markets after some positive factory data out of the U.S. Investors also weighed some encouraging U.S. automobile sales data for March, with most car makers recording significant growth, fueling hopes of demand growth for oil.  U.S. crude stocks increased sharply last week, refined fuel inventories fell, and crude imports rose, data from industry group the American Petroleum Institute showed on Tuesday.  Japan is offering to sell a total 700,000 kilolitres, or about 4.4 million barrels, of crude from the government's Strategic Petroleum Reserves, aiming to replace them with other grades, a tender document from the trade ministry showed on Tuesday.
Gasoline stocks independently held in Europe's Amsterdam-Rotterdam- Antwerp hub rose this week by 8.25 percent to 1 million tonnes as traders switch to summer-grade product, data from Dutch oil analyst Pieter Kulsen showed on Thursday. Libya's crude oil exports totalled 41.966 million barrels in February, state energy firm the National Oil Corporation (NOC) said on Tuesday.  Output of oil and natural gas in Brazil fell for the 11th straight month in February as repairs to existing platforms in the country's main producing region put wells out of service, Brazil's petroleum regulator, the ANP, said on Tuesday.

Fundamental Outlook:

Crude oil prices are trading lower on NYMEX today. We expect a further drop in the prices of oil on account of higher inventory at key ports. Selling on rise is recommended for the day.

Govt ups tariff value of gold by $5 to $512/10 gm

In a bid to contain the widening current account deficit and soaring inflation, the government today raised the tariff value of gold to discourage its imports.
Despite Finance Minister P Chidambaram virtually ruling out hike in import duty on the yellow metal, the tariff value of gold has been raised to USD 521 per ten gms from USD 516 per ten gms.

Tariff value is the base price on which customs duty is determined.

Given the turmoil in global economy, gold has always been seen as a safe haven and a hedge against soaring inflation. In January, import tax on gold was raised to 6 percent to curb purchases. However, according to market experts this move did not yield expected results.

However, the tariff value for silver has been lowered to USD 920 per kg from USD 930 a kg. Meanwhile, Chidambaram indicated to Reuters in Tokyo that the government is unlikely to raise the import duty on gold to make it dearer.

"We did raise tariffs from four per cent to six per cent. But there are limits to which tariffs can be raised on gold because if you raise tariff prohibitively gold smuggling will increase," he told the agency.

At present gold prices are ruling at USD 1,597.90 per ounce in Singapore, while silver stood at USD 27.92 per ounce. Gold was quoted at Rs 30,100 per ten gms, while silver was quoted at Rs 53,200 per kg in Delhi.

High gold import has been one of the main factors responsible for the shooting up of the Current Account Deficit (CAD), which soared to a record 6.7 per cent of the GDP for the quarter ending December.