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CAPITALSTARS – MCX COMMODITY MARKET NEWS & LEVELS – 26 OCT 2018

Commodities-Market-1

Gold Prices Struggle to Capitalize on Market Meltdown.

Gold prices tiptoed lower while crude oil prices rose tepidly with stocks amid a brief interlude in the broad-based risk appetite collapse defining financial markets this week (as expected). These moves’ corrective character was made plain soon enough however as sentiment soured anew in Asia Pacific trade. Third-quarter US GDP data may amplify the risk-off push. Growth is seen slowing to an annualized rate of 3.3 percent, down from the four-year high of 4.2 percent previously. That is both a large-enough comedown to rattle already jittery investors and a strongenough print to keep Fed rate hikes on track.

In the physical market, spot discounts are likely to widen after long-term contracts were completed and as copper prices rose.

On Thursday, LME copper rebounded to $6,200/mt from a two-week low of $6,113.5/mt after data showed that LME inventory decreased to a 12-year low. A robust dollar then forced it to give up some gains before the contract refreshed day-highs of $6,227.5/mt on short-covering. As shorts took profits, the SHFE 1812 contract crept to session-highs of 50,390 yuan/mt before it edged down by closing. In the physical market, spot discounts are likely to widen after long-term contracts were completed and as copper prices rose. Downstream consumers stood on sidelines. LME copper is likely to trade at $6,150-6,220/mt today with the SHFE 1812 contract at 49,900-50,400 yuan/mt. Spot discounts are seen at 80-30 yuan/mt.

Anticipation of nickel pig iron (NPI) supply increases and downstream consumption cuts.

London nickel came off from day-highs of $12,335/mt and closed at $12,185/mt overnight. The SHFE 1901 contract fell from the 102,000 yuan/mt level to end in the red overnight. Anticipation of nickel pig iron (NPI) supply increases and downstream consumption cuts and fears of a slowdown in global economic growth accounted for the recent declines in nickel prices. But low inventories provided some support at the 100,000 yuan/mt level. LME nickel is expected to hover around $12,150/mt today with the SHFE 1901 contract at 100,500-102,000 yuan/mt. Spot prices are seen at 101,000-108,500 yuan/mt.

Oil prices fell under extreme selling pressure.

Oil prices fell on Friday and were heading for a third weekly loss, pulled down as Saudi Arabia’s OPEC governor said the market may become oversupplied soon and after a slump in global equities clouded the outlook for demand. Saudi Arabia’s OPEC governor said on Thursday that the oil market could face oversupply in the current quarter. Saudi Arabia Energy Minister Khalid Al-Falih said there could be a need for intervention to reduce oil stockpiles after increases in recent months. Crude oil stockpiles rose last week for the fifth consecutive week, while gasoline and distillate inventories fell, the Energy Information Administration said this week. in stock markets have roiled oil prices this week as Wall Street had its biggest daily decline since 2011. near $10 per barrel drop in Brent crude seen over October is a spillover from the global sell-off in equities and broader risk-off sentiment in the market,” said Fitch Solutions.

Precious Metals

CS GOLD (DEC) OVERVIEW:
TREND : BEARISH
RESIST 2: 32200
RESIST 1: 32100
SUP 1: 31850
SUP 2: 31750

CS SILVER (DEC) OVERVIEW:
TREND : BEARISH
RESIST 2: 39200
RESIST 1: 38900
SUP 1: 38600
SUP 2: 38400

Base Metals

CS COPPER (NOV) OVERVIEW:
TREND : BEARISH
RESIST 2: 455.00
RESIST 1: 450.00
SUP 1: 442.00
SUP 2: 438.00

CS NICKEL (OCT) OVERVIEW:
TREND : BEARISH
RESIST 2: 910.00
RESIST 1: 895.00
SUP 1: 880.00
SUP 2: 870.00

CS ZINC (OCT) OVERVIEW:
TREND : BEARISH
RESIST 2: 202.00
RESIST 1: 199.00
SUP 1: 196.00
SUP 2: 194.00

CS LEAD (OCT) OVERVIEW:
TREND : BEARISH
RESIST 2: 150.00
RESIST 1: 148.00
SUP 1: 145.00
SUP 2: 143.00

CS ALUMINIUM (OCT) OVERVIEW:
TREND : BEARISH
RESIST 2: 148.00
RESIST 1: 146.00
SUP 1: 144.00
SUP 2: 142.00

Energies

CS CRUDE OIL (NOV) OVERVIEW:
TREND : BEARISH
RESIST 2: 5000
RESIST 1: 4950
SUP 1: 4840
SUP 2: 4800

CS NATURAL GAS (OCT) OVERVIEW:
TREND : BEARISH
RESIST 2: 237.00
RESIST 1: 235.00
SUP 1: 232.00
SUP 2: 230.00

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