Commodity Tips for the Week
Gold:
Gold rallied on Friday to near a record high, posting its biggest three-week gain since November as investors cut exposure to risks stemming from Greece’s debt crisis and tumbling global stock markets. Gold futures rallied in afternoon trade to the firmest since December 4th as volatile equities and currencies prompted nervous anxious investors to buy gold. Investors piled into gold exchange traded funds and coins and bars, with bullion holdings in the biggest gold-backed ETF rising 20 tonnes on Thursday, the biggest one-day gain since February 2009.
Market Overview
COMEX gold is strong on charts and sustain above 1200 $ an ounce. Last week COMEX gold sustained above 1180$ an ounce, in the coming week 1226$ /1230$ an ounce will be a major resistance in gold. If COMEX gold breaks and sustains above 1230$ an ounce then it can move slightly upward and could come near 1240 $/ 1250$ an ounce. And below 1180$ an ounce can move slightly downward.
Strategy
For the next week traders can use the buy on lower level strategy if COMEX gold sustains above 1174 $ /1180$ an ounce by keeping the strict stop losses.
Major support for COMEX gold in the coming week would be 1175$ and 1150$
Major resistance for COMEX gold in the coming week would be 1230$ and 1250$
Major support in MCX gold is 17540 and 17100
Major resistance in MCX gold is 18180 and 18400
Copper:
U.S. copper futures ended up in extremely volatile business on Friday, as buyers moved in near the 300 level, a key technical area that will remain a challenge as European debt contagion fears linger.
Market Overview
As we mentioned last week COMEX copper below 300 did a low of 300.55, for the upcoming week 290 $/285 level can act as a good support for COMEX copper, if it breaks this level and sustains below it we can see 270 level.
Strategy
Copper is still bearish and for the next week one should use the strategy of sell on higher levels.
For the next week COMEX copper has important support of 300 and 285 and resistance of 341 and 356.
MCX copper has support at 291 and 282 and resistance at 334 and 350.
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