GOLD SILVER CRUDE Treding Analysis

Posted: May 28, 2014 in Uncategorized

GOLD
Holdings of SPDR GOLD Trust GLD ETF rose 1.08% to 785.89 tonnes yesterday. Spot gold prices declined by more than 2 % in yesterday’s trading session as S&P equities index traded at high levels in the US. Economic optimism about the US economy also triggered heavy bout of selling. Expectations of rate cuts by the European Central Bank stoked investor‘s appetite for equities. Also, orders for U.S.-made durable goods unexpectedly rose in April and consumer confidence perked up in May that rebound economic growth.
Forecast
Precious metals fell 2% in yesterday’s trading session, the most in one day since December. Precious metals are trading lower on COMEX today. We expect prices to trade in consolidate phase.
SILVER
Holdings of New York’s iShares Silver Trust SLV marked at 10,284.40. Taking cues from weakness in gold prices even spot silver prices declined by more than 1.5% and closed at $19.1/oz.
Forecast
On an intraday basis silver prices are expected to trade lower as hopes ECB will add stimulus measures to boost the economy led to strength in the dollar exerting downside pressure on prices. Besides, good economic data from the US also led to decline in the bullions safe havens status acting as a negative factor.
CRUDE
Crude edged lower yesterday with prices supported by violence in Ukraine and expectations for a draw on U.S. crude stocks. Oil exports from Iraq’s southern terminals are on track for a record high in May which accelerates supply growth in 2014 after a slowdown last year. U.S. commercial crude oil stocks and refined product inventories were expected to have risen in the week to May 23.
Forecast
Crude is seen trading at $104.21 and likely that the prices may remain higher with very strong gains in the Asian equity markets. According to US DoE crude slipped 7.23 million barrels to 391.3 million for the week ended May 16. Today Crude may take some corrections.
TODAY’S DAY RANGE

COMMODITY S1 S2 R1 R2
GOLD 1257 1250 1271 1380
SILVER 18.90 18.80 19.30 19.50
CRUDE 103.50 102.70 105.00 105.90

DAY’S HIGHLIGHT

  • US Core Durable Goods Orders grew by 0.1% in last month.
  • API crude oil inventories expected to gain by 0.7 mn bbl.
  • UK’s BBA Mortgage Approvals declined by 3,700 to 42,200 in April.
  • US CB Consumer Confidence grew by 1.3 points to 83-mark in May.
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