Gold prices dropped as confusion over Greece's debt negotiations with its European lenders dominated markets.

DATE: 13 FEB-2015

Gold prices dropped as confusion over Greece's debt negotiations with its European lenders dominated markets.

MCX Apr Gold futures continued to maintain it’s down bias by violating its rising trend-line support at 26680 levels. Now the outlook remains weak and further fall can be seen towards 61.8% Fibonacci level of 26332 levels. Hence, any rise can be limited at 26585 and bring some selling pressure from the same.

Action	Entry	Target	stop
SELL	Around 26585	26410	26670

Gold remains flat as confusion over Greece's debt negotiations with its European lenders dominated markets. Financial markets had been under pressure as euro zone finance ministers were unable to agree with Greece a final statement or a way to continue talks until their next meeting on Monday to extend an international bailout. Gold's sell-off for much of this week, despite the Greek debt crisis, suggests that markets are either expecting an ultimately positive result, or they may be discounting the country's possible exit as a net positive. An interest rates hike by the U.S. central bank, which has kept rates near zero since 2008 to stimulate the U.S. economy, could further strengthen the dollar and in turn hurt demand for bullion, a non-interest-bearing asset . India is likely to remain the world's biggest gold consumer this year after regaining the top spot from China in 2014, driven by robust jewellery demand, the World Gold Council (WGC) said. Indian consumer demand for gold jewellery and investment totalled 842.7 tonnes last year, compared with 813.6 tonnes by China, according to WGC data. Demand dipped in both countries in 2014 from record levels a year earlier, but Indian demand slid only 14 percent, compared with a much steeper 38 percent fall in China. The two countries accounted for over half of global demand. Global gold demand also hit a five-year low last year as buying of jewellery, coins and bars failed to keep pace with 2013's elevated levels, the WGC said. Technically market is under long liquidation as market has witnessed drop in open interest by -0.73% to settled at 8705, now Gold is getting support at 26418 and below same could see a test of 26317 level, And resistance is now likely to be seen at 26710, a move above could see prices testing 26901.

Silver prices remained dropped as European leaders failed to agree on Greece’s bailout program after talks in Brussels

Silver can move in range of 36800-37800 in MCX.

Action	Entry	Target	stop
SELL	Around 37550	36950	37850

 Silver prices remained in the range as European leaders failed to agree on Greece’s bailout program after talks in Brussels. Prices rose earlier after more stimulus from the Swedish central bank. The Riksbank lowered its repo rate to minus 0.10 percent from zero and said it will also make policy “more expansionary” by soon buying 10 billion kronor ($1.2 billion) in government bonds with maturities of one to five years. Core retail sales, which exclude automobile sales, slumped by 0.9% in December, disappointing forecasts for a 0.4% decline. Rising retail sales over time correlate with stronger economic growth, while weaker sales signal a declining economy. Core sales correspond most closely with the consumer spending component of the government's gross domestic product report. Consumer spending accounts for as much as 70% of U.S. economic growth. At the same time, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending February 7 increased by 25,000 to 304,000 from the previous week’s revised total of 279,000. The disappointing data scaled back expectations that the Federal Reserve will start raising rates from near zero levels as early as June. The U.S. dollar came under broad selling pressure as expectations grew the Federal Reserve would keep its loose monetary policy. Dollar weakness has been fueling the rally in gold as economic uncertainties and speculation on more monetary easing by central banks drive investors to bullion as an alternative investment. Technically market is under fresh selling as market has witnessed gain in open interest by 1.24% to settled at

Crude oil gained as a weakened dollar and industry spending cuts offset worries of a supply glut.

Demand is increasing and there are indications that prices are stabilizing, according to Saudi Arabia’s Oil Minister Ali al-Naimi.

Action	Entry	Target	stop
BUY	Around 3230	3420	3100

Crude oil futures climbed on Thursday, arresting a two-session losing streak, as industry spending cuts and a weaker dollar spurred buying. U.S. March crude futures closed up $2.37, or 4.9 percent, at $51.21 a barrel, after falling more than 2 percent in the previous session. Volatility in the oil market has jumped to the highest level since the financial crisis, with prices swinging in a wide range this month following the near 60 percent crash between June and January. Natural gas may trade on volatile path as its prices can move in range of 166-174 in MCX. The U.S. Energy Information Administration (EIA) reported Thursday morning that U.S. natural gas stocks decreased by 160 billion cubic feet for the week ending February 6. Estimates called for drawdown of 166 billion to 170 billion cubic feet.

Production rose by 49,000 barrels a day to 9.23 million a day, according to the Energy Department’s statistical arm. That’s the highest level in weekly data that started in January 1983. Technically market is under short covering as market has witnessed drop in open interest by -2.61% to settled at 21987 while prices up 95 rupee, now Crudeoil is getting support at 3100 and below same could see a test of 3029 level, And resistance is now likely to be seen at 3220, a move above could see prices testing 3269.

Copper prices gained as investors cheered reports of a cease-fire agreement between Russia and Ukraine

Base metals may trade sideways with firm bias as investors will eye euro zone GDP and Michigan consumer confidence data later today.

Action	Entry	Target	stop
SELL	Around 360	353.5	363.3

Base metals may trade sideways with firm bias as investors will eye euro zone GDP and Michigan consumer confidence data later today. Copper may trade in range of 352-360 while Lead may move in range of 113-114. Aluminum may move in range of 113-115. Nickel may move in range of 910-930 in MCX. Zinc may move in range of 132-134. Copper futures have closed higher on the London Metal Exchange, boosted by higher risk-taking appetite following a deal to end Ukraine's conflict with Russian-backed separatists in the east of the country. The rally in base metals was spurred by the successful resolution of talks in Minsk between Russia and Ukraine, which resulted in a ceasefire agreement being struck with Russia-backed separatists.

Copper prices gained as investors cheered reports of a cease-fire agreement between Russia and Ukraine. Technically market is under fresh buying as market has witnessed gain in open interest by 2.13% to settled at 13146, now Copper is getting support at 352.6 and below same could see a test of 347.4 level, And resistance is now likely to be seen at 361.3, a move above could see prices testing 364.8.