Here is our weekly commodity samachar with detailed facts, news, impacts and their influences.
After the 0.50% increase by ECB (European Central Bank), there was a jump in the metals, but once again the momentum of the bullish momentum was seen to be hindered by the closing of the market on Friday.
The full focus of the market will be on the Fed meeting on Wednesday night. The change in interest rates will present an important message in this Fed meeting.
Looking at the figures, it is expected that there can be an increase of 0.50% in the interest raters. If this happens, the markets will remain stable. But if the interest rate is increased by 0.25% or not, there will be a sharp jump in gold and silver, and on the other hand, an increase in interest rates of 0.75% can lead to a sharp decline in the metals and stock market.
The US 30-year bond has a support of $2.90. If the US bond yield breaks the level of $2.90, there will be signs of a major downside. A fall in bond yields is considered good for the stock market and the economy. Bonds are the first indicator in any financial market.
What is bond yield can be seen on youtube
Due to the fear of increase in interest, there will be pressure in the stock market and commodity prices for the first 3 days. The correct trend of the market will be available only after the Fed meeting. Therefore, traders will not be advised to make any big positions till Wednesday.
There has been a big fall in crude oil prices, which is expected to reduce inflation in the US, but recent economic data shows that there is still no big improvement in the US economy. US inflation has crossed 9% which is a problem in itself.
Common citizens are troubled due to inflation. Problems can arise due to rising unemployment and increasing interest on loans. Now it remains to be seen how long the US economy can tolerate the increased interest rates. Interest rate above 3.5% will be a big problem. Japan has given relief to the common man by not making any changes in the interest holders.
Along with the expiry of gold and base metal this week, US consumer confidence figures on Tuesday and the Fed meeting on Wednesday will add fuel to the fire. On the other hand, US will help Ukraine with more military weapons. Russia-Ukraine tensions do not seem to be ending soon.
Trends in Gold and Silver
Support in gold is of 50200—49500 and resistance is of 50900—51300. Traders take a sell trade near the resistance for the next 3 days. Be sure to take care of the intraday levels. Will not sell around support.
Silver has support of 54800—54000 and resistance is of 55900—56500. We will go up only when we close above 56500. Till then trade in a limited range.
There will not be much movement in the market on Monday, but on Tuesday evening there will be uproar only after the consumer confidence figures.
Trends in Bass Metal (August)
Copper has the support of 622—615 and the resistance is of 644. Be careful at the lower levels.
The Lead has a support of 174—170 and a resistance of 178. The bullish will be seen only above 178.
Buy Zinc above Rs.278.50. Target can be seen up to 289—296. Support is of 266. Will do selling only when the it closes below 266.
Targets up to 219—225 can be seen in aluminum. Support is of 207—203. Be careful at the lower levels.
Trends in Crude and Natural Gas
The downward trend in crude oil will continue. In crude oil, the doors will open up to 7100—6700 below 7550. A bullish trend will be formed only when it closes above 8100. Sell ​​near 7800 on strong upside. Place stop loss at 8100. We will see targets up to 7100—6700.
Natural gas will be kept away from trading at these levels. The move is very big and now we will not run fast at these levels. Support in natural gas is 620—550 and resistance is of 690—750.
If you can take the risk, then sell August Natural Gas around 692—712. Place stop loss above 750. Below the target will be seen up to 620—550.
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