Sure Shot MCX Tips

Gold futures began week on strong note in Asia electronic trades today, after retreating 1% last week on ongoing fears over the looming fiscal crisis in the U.S. and growing tension in the Middle East.

December delivery gold futures are trading up $7.3 at $ 1722 an ounce on the Comex division of the New York Mercantile Exchange. The counter may find support near $1685 levels with resistance near $1740 levels in the near term.

Silver for December delivery fell 1.1% on Friday to settle the week at $32.30 a troy ounce. Earlier in the session, silver futures touched a one-week low of $32.02 a troy ounce. On the week, silver futures shed 0.7%.

Investors continue to remain concerned over the looming “fiscal cliff” in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1. Congressional leaders said talks with President Barack Obama on Friday to avert the fiscal crisis were "constructive."

There are fears the U.S. economy will fall back into a recession, unless a divided Congress and the White House can work out a compromise in the seven weeks left before the January 1 deadline.

Gold hit a one-week low of $1,704.55 a troy ounce on Thursday, after the World Gold Council said global demand for the precious metal dropped 11% in the third quarter.

In the coming week, market participants will be focusing on developments relating to the U.S. fiscal cliff, as well as Tuesday’s meeting of the euro group of finance ministers to discuss unlocking Greece’s next aid installment.

MCX December gold futures may open today’s session near Rs 31,670 levels with resistance near Rs 31700 -750 levels.

Sure Shot MCX Tips

Gold futures began week on strong note in Asia electronic trades today, after retreating 1% last week on ongoing fears over the looming fiscal crisis in the U.S. and growing tension in the Middle East.

December delivery gold futures are trading up $7.3 at $ 1722 an ounce on the Comex division of the New York Mercantile Exchange. The counter may find support near $1685 levels with resistance near $1740 levels in the near term.

Silver for December delivery fell 1.1% on Friday to settle the week at $32.30 a troy ounce. Earlier in the session, silver futures touched a one-week low of $32.02 a troy ounce. On the week, silver futures shed 0.7%.

Investors continue to remain concerned over the looming “fiscal cliff” in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1. Congressional leaders said talks with President Barack Obama on Friday to avert the fiscal crisis were "constructive."

There are fears the U.S. economy will fall back into a recession, unless a divided Congress and the White House can work out a compromise in the seven weeks left before the January 1 deadline.

Gold hit a one-week low of $1,704.55 a troy ounce on Thursday, after the World Gold Council said global demand for the precious metal dropped 11% in the third quarter.

In the coming week, market participants will be focusing on developments relating to the U.S. fiscal cliff, as well as Tuesday’s meeting of the euro group of finance ministers to discuss unlocking Greece’s next aid installment.

MCX December gold futures may open today’s session near Rs 31,670 levels with resistance near Rs 31700 -750 levels.

MCX Tips

World Bureau of Metal Statistics (WBMS) showed that zinc market was in surplus by 217000 tonnes during January to August 2012 which compares with a surplus of 566000 tonnes recorded in the whole of the previous year. Reported stocks rose by 56000 tonnes in the first eight months of the year with almost all of the increase recorded at LME warehouses. LME stocks represented 75 percent of the global total.

Production of locally refined metal in China fell by 7.4 per cent compared with the previous year. According to Chinese customs data, imports remain at historically high levels. Much of the Chinese imports originate from other Asian countries. Exports reported by Japan, South Korea and Taiwan confirm the Chinese imports.

Global refined production fell by 3.1 percent and consumption fell by 0.9 per cent compared with the levels recorded one year earlier. Japanese demand was, at 291.9 kt, 12.6 per cent below the equivalent total for January to August 2011. In August 2012, slab zinc production was 1.036 million tonnes.

World demand was 74000 tonnes lower than corresponding period previous year to 8.11 million tonnes. Chinese apparent demand was 3.49 million tonnes, which is just over 43 per cent of the global total. Chinese demand rose by 1.7 percent compared with the first eight months of 2011. In August 2012, slab zinc consumption 1.063 million tonnes.

Weekly MCX Commodity Report

The prices of bullion's dropped sharply in the week due to heightened profit taking and some positive reports from US and Eurozone towards the end of the week. US consumer sentiments jumped to a five year high. Meanwhile, COMEX Gold futures for December delivery on NYMEX closed at $ 1759.7 per troy ounce, down 1.2% in the week. University of Michigan report showed that the consumer sentiment index for October came in at 83.1 compared to the final September reading of 78.3.

The weekly jobless claims of US fell to a four year low eradicating worries relating to economy. Initial jobless claims tumbled to 339000 from the previous week's revised figure of 369000. The drop surprised economists, who had expected jobless claims to edge up to 370,000 from the 367,000 originally reported for the previous month. This was the highest level of consumer sentiments since September 2007.

Industrial production in the euro zone rose unexpectedly last month. In a report, Eurostat said that Euro zone industrial production rose to a seasonally adjusted 0.6%, from 0.6% in the preceding month. US Dollar index that tracks the movement of Dollar against six major currencies settled at 79.69, up 35 pips against the close of 79.34 at the beginning of the week.