GET FINANCIAL &
ADVICE FROM US TO
MANAGE YOUR MONEY
Recent fall in gold and silver prices were the result of an
over-reaction from bond markets to Fed comments and
ultimately real interst rates will fall back from current
levels, making the situation positive for precious metals
in general, according to ETF Securities Ltd. In the near
term, further declines in gold prices can't be ruled out
but the fact that gold is trading 20% below its average
marginal cost of production, silver 10%, and platinum
25% below marginal production costs, prices will have to
move above these levels to support long term supply
growth, according to ETF Securities Ltd. "With gold
speculative shorts at all-time highs and market sentiment
almost unanimously negative, we believe there is scope
for a price reversal in the coming weeks and months.
Silver should benefit from a gold price rebound. Platinum
and palladium have been affected more by the recent
liquidity squeeze and resultant growth fears in China.
Again, we believe the sell-off is overdone. We expect
China liquidity conditions will ease and growth fears will
dissipate over the course of the year, removing this
hindrance to platinum and palladium price
performance." ETF Securities points out that all bull
markets need a correction and the yellow metal has gone
through a 12 year rally. But the price corrections have
been excessive and has returned the have returned
precious metals prices to attractive long-term
accumulation levels. In the near-term it is difficult to see
any immediate catalysts for a sustained rebound in the
gold price. Gold will likely face headwinds as long as US
interest rates continue to rise, inflation expectations
continue to fall and the US dollar continues to
strengthen. "However, we believe these are cyclical
factors that are temporary."
The trend in crude oil futures for July delivery on India's
Multi Commodity Exchange (MCX) looks sideways to
bullish for the day and traders are advised to stay on buy
“For intra-day, support for the commodity is seen at 5830
while resistance is seen at 5870. If prices break the level
of 5870 then the futures are expected to move towards
5900,” said Amrita Mashar, Research Analyst at
“Traders may take buy position above 5870 with the stop
loss of 5850 for the target near 5900,” she added. MCX
crude oil futures for July delivery was seen trading up by
0.70% at Rs.5869 per barrel as of 17.24 IST on Tuesday.
Brent crude oil prices in the international market rose
above $103 per barrel on Tuesday on concerns over
Middle East political tensions.
Brent crude oil futures for August delivery on NYMEX was
seen trading up by 0.20% at $103.23 per barrel as of
17.35 IST on Tuesday. Persisting political tensions in
Libya, Egypt have caused for temporary shut down of
crude oil fields there by supporting the crude oil prices to
The crude oil prices were also supported by positive US
Manufacturing data. On Monday, the Institute for Supply
Management stated that its factory index rose to 50.9 in
June, up from 49 recorded in the previous month. May's
index was the lowest in four years. A reading above 50
signals growth and below the same shows contraction.
Copper futures for August delivery on India's Multi
Commodity Exchange (MCX) is positive and traders are
advised to take long position for the day.
“For intra-day, resistance for the commodity is seen at
420, if prices break the same then the next resistance
level is seen at 424 level,” said Tarang Parmar,
Research Analyst at Commodity Online.
“Support for the futures is seen at 411 and 409 levels.
Intra-day traders may take long position near 413 with
the stop loss below 409 and can wait for the target at
419 level,” he added.
Appreciation of Indian Rupee against US Dollar is
expected to pressurise the base metal prices to certain
extent during intra-day trade.
MCX copper for August delivery was seen trading
down by 0.29% at Rs.415.95 per kilogram as of 13.27
IST on Tuesday.
The United States Census Bureau is scheduled to
release its monthly data on Factory Orders at 19.30 IST
today and traders may get trading clues for their
trading from the data released.
Also, the Federal Open Market Committee's (FOMC)
permanent voting member (2009 - 2013) William C.
Dudley's speech is expected at 22.00 IST today
Concerns over economic recovery in China is putting
pressure on the base metal movement in both
domestic and international market to certain extent.
The information and views in this report, our website & all the service we provide are believed to be reliable, but we do not
accept any responsibility (or liability) for errors of fact or opinion. Users have the right to choose the product/s that suits
them the most.
Sincere efforts have been made to present the right investment perspective. The information contained herein is based on
analysis and up on sources that we consider reliable.
This material is for personal information and based upon it & takes no responsibility
The information given herein should be treated as only factor, while making investment decision. The report does not
provide individually tailor-made investment advice. TheEquicom recommends that investors independently evaluate
particular investments and strategies, and encourages investors to seek the advice of a financial adviser. TheEquicom shall
not be responsible for any transaction conducted based on the information given in this report, which is in violation of rules
and regulations of NSE and BSE.
The share price projections shown are not necessarily indicative of future price performance. The information herein,
together with all estimates and forecasts, can change without notice. Analyst or any person related to TheEquicom might be
holding positions in the stocks recommended. It is understood that anyone who is browsing through the site has done so at
his free will and does not read any views expressed as a recommendation for which either the site or its owners or
anyone can be held responsible for . Any surfing and reading of the information is the acceptance of this disclaimer.
All Rights Reserved.
Investment in Commodity and equity market has its own risks.
We, however, do not vouch for the accuracy or the completeness thereof. we are not responsible for any loss incurred
whatsoever for any financial profits or loss which may arise from the recommendations above. TheEquicom does not
purport to be an invitation or an offer to buy or sell any financial instrument. Our Clients (Paid Or Unpaid), Any third party or
anyone else have no rights to forward or share our calls or SMS or Report or Any Information Provided by us to/with anyone
which is received directly or indirectly by them. If found so then Serious Legal Actions can be taken.