Commodity World…


Gold futures closed in positive after trading in a range with high volatility, as a weaker dollar and a rally crude oil prices prompted bullion investors to cover bearish bets ahead of the closely watched policy statement by the Federal Reserve.

The gold holdings of SPDR gold trust declined to 784.22 tons as on Sept. 16, while that of ishares Silver trust increased to 10,559.32, as on Sept 12. The dollar fell, ahead of a meeting of the U.S. Federal Reserve, sending the euro to a near two-week high against the greenback, and boosting the bullions safe-haven appeal.

Gold futures traded steadily and in a range in yesterday’s session, facing resistance on the downward sloping trend line at 27120. Gold now holds immediate support at 26900, below which it can fall further towards supports at 26790 and 26600 levels, while resistance holds at 27120 and next at 27250.

Silver futures traded steady to positive in the first-half of the session, but prices fell slightly from their days high and later consolidated in a range. Silver futures now hold immediate support at 41330 and next at 41210, while resistance holds at 41780 and next at 42000.

Both crude & Brent oil rallied in yesterday’s session, on prospect of a production cut by OPEC, a weakening dollar and reports that Libya had curbed output after rockets hit an area near a refinery.

Oil prices rose earlier in the day, after Russia said that deploying troops in Crimea, which Russia annexed from Ukraine in March, was a top priority with NATO holding military exercises in Ukraine near its border with Poland – Reuters.

OPEC Secretary General Abdallah El-Badri told reporters that he expected the group to lower its oil output target to 29.5mn barrels per day (bpd) from 30mn bpd when it next meets in late Nov.
Crude and distillate inventories rose by 3.3mn barrels, while gasoline stockpiles decreased by 1.2mn barrels, as per API report. Expected EIA inventories: Crude oil -1.6mn barrels and gasoline -0.5mn barrels.

Natural gas futures fell for the first time in 3- sessions, as market players continued to monitor near-term weather forecasts to gauge the strength of demand for the fuel ahead of Thursday’s closely-watched supply report.

Crude oil futures traded in a range in the first-half of the trading session, but rallied sharply in the second-half. Prices now hold immediate support at 5740 & next at 5680, with resistance at 5805 and next at 5850.

Natural gas futures too were down in the first-half of the session, but rallied sharply in the second-half. Prices now hold immediate support at 242 and next at 239.5, while resistance is seen at 245 and next at 248.

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