CRUDE OIL :
Crude Oil Daily chart has formed “Symmetrical triangle” pattern. The trend remains bullish as the market have finally broken out the pattern itself. As per the break in previous resistance market is to continue in the same trend. The upside rally could test $60-61(3842-3905) levels in the upcoming sessions. Resistance holds at $61(3905) and support at $58(3714). Alternatively, we can also expect a small correction over negative momentum.
The four-hour technical chart of Gold future market continues in “Falling wedge” pattern which descends in bearish momentum and has already broken the pattern itself. The last few sessions have been successfully bullish breaking all possible higher resistance levels inside and outside the channel. The market is expected to continue in the same trend and the upside rally could test $1285-1290(28725-28850) levels in the upcoming sessions. Major Resistance holds at $1290(28850) and previous resistance becomes support at $1274(28500).
Last week, spot gold prices rose by around 1% while MCX gold prices rose by 0.9 percent.
Gold prices traded positive although the U.S. data on gross domestic product, jobless claims and regional business activity left market views on a stable economy unchanged and the dollar broadly steady. U.S. data showing solid home sales but a fall in mortgage applications pushed the dollar to a two-week low. Besides, optimism on the U.S. tax overhaul would help boost growth and as economic data improves also had its fair share in price moves.
Going in to the year end, reshuffling of portfolios would be the key for fund managers across the globe which would create pressure on all commodities including gold and silver.
We expect gold prices to trade sideways today as the trading activity will be dull on account of Christmas holidays in the western world while optimism in the US economy will lead to gold prices falling in the coming trading sessions.
We expect oil prices to trade higher today continuing its momentum from the previous trading session while the OPEC is working on a plan to cap oil output and balance the oil markets. On the MCX, oil prices are expected to trade higher today, international markets are trading flat at $58.49 per barrel.
BASE METAL :
Base metals continued their positive momentum last week as stable Chinese economic data coupled with weaker DX supported an upside.
MCX base metals apart from Lead traded higher in line with international trends.
COPPER : LME markets are closed today for Boxing Day holiday. MCX Copper prices will likely trade sideways today as volumes will be low citing holiday in the international markets.