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CAPITALSTARS – MCX COMMODITY MARKET NEWS & LEVELS – 21 DEC 2018

                                        Commodities-Market-1

Gold holds ground near 6-month high, weak dollar supports.
Gold prices held firm on Friday, having climbed to a near six-month high in the previous session, as investors shunned risky assets and the dollar lingered near one-month lows. The dollar fell to a more than three-month low against the yen on Thursday, after the Federal Reserve signaled fewer interest rate hikes over the next two years and expressed caution about the U.S. economic outlook. U.S. Federal Reserve Chairman Jerome Powell on Wednesday signaled more interest rate hikes over the next couple of years, but traders of U.S. interest rate futures are not buying it. In fact, they now expect a rate cut in 2020. Global stocks were sailing into Christmas on a sea of red as the threat of a U.S. government shutdown and of further hikes in U.S. borrowing costs inflamed investor unease over the economic outlook. The number of Americans filing applications for jobless benefits rose marginally from near a 49-year low last week, suggesting underlying strength in the labor market and broader economy. The gap between two- and 10-year yields US2US10=TWEB shrank to just 9 basis points at one stage, the kind of flattening that has heralded recessions in the past.

New US-China trade hopes weighed on the US dollar index overnight and supported copper prices.
As Copper prices weakened overnight following the rout on wall Street. LME copper finished Thursday some 0.8% lower at $6,017.5/mt. The SHFE 1902 contract came off from a high of 48,600 yuan/mt to end at 48,230 yuan/mt overnight. Worries over economic growth and an overnight plunge in oil prices are expected to keep copper prices weak today. LME copper is likely to trade at $5,880-6,060/mt with the SHFE 1902 contract at 48,100-48,600 yuan/mt. Spot premiums are seen at 50-170 yuan/mt.
As the US dollar surged, LME nickel tumbled to close lower.
London nickel fluctuated to close lower at $10,955/mt on Thursday. The SHFE 1905 contract pared some earlier gains overnight and closed 0.3% higher at 90,110 yuan/mt. Nickel prices are expected to remain rangebound in the near term. LME nickel is likely to hover around $10,900/mt and the SHFE 1905 contract is expected to trade at 89,000-90,500 yuan/mt. Spot prices are seen at 89,500-95,500 yuan/mt.
Oil prices rise as OPEC output cuts seen deeper than previously expected.
Oil prices climbed on Friday after tumbling 5 percent in the last session, with OPEC production cuts that start next month seen being deeper than previously expected. The Organization of the Petroleum Exporting Countries plans to release a table detailing output cut quotas for its members and allies such as Russia in an effort to shore up the price of crude, OPEC’s secretary-general said in a letter seen by Reuters on Thursday. Mohammad Barkindo said to reach the proposed cut of 1.2 million barrels per day, the effective reduction for member countries was 3.02 percent. That is higher than the initially discussed 2.5 percent as OPEC seeks to accommodate Iran, Libya and Venezuela, which are exempt from any requirement to cut. current oil prices will force OPEC to increase compliance with the production cut deals, supporting Brent prices,” said Wang Xiao, head of crude research at Guotai Junan futures. ANZ Research said in note that investors had been trading on macroeconomic factors and technical analysis
rather than market fundamentals, keeping prices under pressure.

Precious Metals
CS GOLD (FEB) OVERVIEW:
TREND : SIDEWAYS
RESIST 2: 31400
RESIST 1: 31300
SUP 1: 31100
SUP 2: 31000

CS SILVER (MAR) OVERVIEW:
TREND : SIDEWAYS
RESIST 2: 37700
RESIST 1: 37500
SUP 1: 37300
SUP 2: 37100
Base Metals
CS COPPER (FEB) OVERVIEW:
TREND : BEARISH
RESIST 2: 426.00
RESIST 1: 422.00
SUP 1: 415.00
SUP 2: 408.00

CS NICKEL (NOV) OVERVIEW:
TREND : BEARISH
RESIST 2: 775.00
RESIST 1: 765.00
SUP 1: 750.00
SUP 2: 740.00

CS ZINC (DEC) OVERVIEW:
TREND : SDIEWAYS
RESIST 2: 182.00
RESIST 1: 180.00
SUP 1: 178.00
SUP 2: 176.00

CS LEAD (NOV) OVERVIEW:
TREND : BEARISH
RESIST 2: 142.00
RESIST 1: 140.00
SUP 1: 137.00
SUP 2: 135.00
CS ALUMINIUM (NOV) OVERVIEW:
TREND : BEARISH
RESIST 2: 137.00
RESIST 1: 135.00
SUP 1: 133.00
SUP 2: 131.00

Energies
CS CRUDE OIL (DEC) OVERVIEW:
TREND : BERAISH
RESIST 2: 3400
RESIST 1: 3350
SUP 1: 3250
SUP 2: 3230

CS NATURAL GAS (DEC) OVERVIEW:
TREND : BEARISH
RESIST 2: 270.00
RESIST 1: 266.00
SUP 1: 260.00
SUP 2: 255.00

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