MCX DAILY COMMODITY NEWS & LEVELS - 20 October 2016

HIGHLITES:

LME Copper Sets for Losses.Oil prices dip after strong rally, but sentiment remains confident.Gold gains in Asia in cautious trade ahead of U.S. presidential debates

PRECIOUS METALS:

Gold drifted higher on Thursday in Asia in cautious trade as investors looked ahead to the final of three U.S. presidential debates that may throw up some insights on economic policy plans by contenders Donald Trump and Hillary Clinton.

Gold for December delivery on the Comex division of the New York Mercantile Exchange rose 0.06% to $1,270.65 a troy ounce. Elsewhere in metal trading, silver futures for December delivery gained 0.25% to $17.707 a troy ounce.

Overnight, gold prices held onto solid gains on Wednesday as a batch of mixed data on the U.S. housing market kept up pressure on the dollar.

Gold likely gained support at $1,337.50, the low from July 20 and was met with resistance at $ rate

BASE METALS:

LME copper is expected to fluctuate between USD 4,650-4,680/mt on Thursday during Asian trading hours and SHFE 1612 copper will move at RMB 37,100-37,350/mt. In China’s domestic market, spot copper should trade at premiums of RMB 120-180/mt on Thursday.

Interest rate decision by European Central Bank (ECB) and the third presidential debate in the US will be the focus of markets today. Base metals fell initially and then rose overnight, and will continue to diverge today.

Eurozone annualized September CPI doubled that in August, meaning quantitative easing policy is showing result. The market thus expects Germany’s September PPI to improve

ENERGIES:

Oil prices dipped on Thursday on profit taking after markets rallied the previous day due to a draw in U.S. stocks and an expectation of an OPEC-led cut in production.

Oil prices continued to rise overnight on optimism over OPEC supply restraint and weaker-than-expected inventories," ANZ bank said on Thursday. The overall mood in oil markets remained confident, with most analysts expecting further increases.

Reuter’s technical commodity analyst Wang Tao said U.S. oil is expected to break a resistance zone of $51.67 to $52.11 per barrel, and then rise towards $52.78. Meanwhile, Brent oil may stabilize around a support at $52.49 per barrel and then retest a resistance at $53.45

MARKET LEVELS: CS GOLD (DECEMBER) OVERVIEW:TREND : SIDEWAYSRESIST 2: 30200RESIST 1: 30050

CS SILVER (DECEMBER) OVERVIEW:TREND : SIDEWAYSRESIST 2: 43300RESIST 1: 43000

CS COPPER (NOVEMBER) OVERVIEW:TREND : BEARISHRESIST 2:318RESIST 1:316

CS NICKEL ( OCTOBER ) OVERVIEW:TREND : SIDEWAYSRESIST 2: 698RESIST 1: 693

CS CRUDE OIL (NOVEMBER) OVERVIEW: TREND : BULLISHRESIST 2:3540RESIST 1:3500

CS NATURAL GAS ( OCTOBER ) OVERVIEW:TREND : BEARISHRESIST 2:219.00RESIST 1:216.00

MCX CRUDE OIL November Wednesday as seen in the daily chart opened at 3358 levels and day high of 3464 levels. During this period price corrected & made day low of 3358 levels finally closed at 3449 levels. Now, there are chances of further upward movement technically & fundamentally.

• Oil prices continued to rise overnight on optimism over OPEC supply restraint and weaker-than-expected inventories," ANZ bank said on Thursday. The overall mood in oil markets remained confident, with most analysts expecting further increases.

DAILY RECOMMENDATION: BUY MCX CRUDE OIL NOVEMBER AROUND 3400 LEVELS FOR TARGET OF T1 3500/T2 3550 WITH SL OF 3300 LEVELS.

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