Fundamental & Technical Outlook on Commodities:-

Fundamental & Technical Outlook on Commodities:- Precious metal:- Gold prices moved in range on Friday over thin trading volume in international market and physical buying from Chinese consumers. Gold is already down more than 25% for the year. SPDR Gold Trust GLD, the world's largest Gold-backed exchange-traded fund’s holdings continued to fell and are down by 0.19% yesterday. Gold prices in India also moved higher as weaker rupee supported the moving Gold prices along with speculation of easing the Gold import restrictions pushed the prices higher. Gold prices are expected to move in range to lower as better than expected US unemployment claims along with Chinese buying and thin volumes can keep the prices in range. Over all, MCX Gold February future is in consolidation and sustaining around lower levels. For the coming week 27700/27340 will act as a major support whereas 28785/29100will act as a major resistance level in MCX Gold February future. For the next week in MCX Gold, trader can use sell on higher level strategy, if MCX Gold February future sustain below the levels of 28250 then it could test the levels 28080 /27770. Technically, MCX Silver March futures is sideways and sustaining around lower levels. For the coming week 45000/46800 will act as major resistance levels where as 41600/40000 will act as major support in MCX Silver March futures. For the next week in MCX Silver futures, traders can use sell on higher level strategy, if MCX Silver March futures sustains below 43500 then it could test the levels of 42450/ 41000. Energy:- U.S. crude prices rose on Friday as supply disruption fear from Sudan and Libya kept the prices in check during the Holiday week in all major markets. Supply outages in Africa are also in focus and added some geopolitical risk premium to prices. Crude oil prices are expected to move up for the week as ongoing tensions in Libya and Sudan can support oil prices, also draw down in Crude inventories can push the prices higher. For the coming week 6150/5900 will act as major supports levels whereas 6500/6710 will act as major resistance in MCX Crude oil January futures. For the next week, trader can go for buy on lower level strategy, if MCX Crude January future sustain above 6250 levels then it could test the levels 6348/6470. Base Metal:- Copper prices gained on Friday over optimism from Chinese buyers and statement from its cabinet report saying China to grow around 1.6% for the year. Japanese manufacturing activity expanded in December at the fastest clip in more than seven years. Indonesia will provide exemptions to its 2014 mineral export ban for firms that process more domestically. Copper can move higher as demand from China and supply Issues in Indonesia can push the prices higher for the week. Trend of MCX Copper February future is in consolidation and also sustaining around higher levels. For the coming week, it could face major resistance of 497/513 whereas 462/451could be a major support in MCX Copper. For the next week trader may follow buy on lower levels strategy, if MCX Copper future sustain above 473 levels then it could test the level of 482.30/496.90. (Mr. Vivek Gupta- Director Research) Commodity market outlook (CapitalVia Global Research Limited)