Daily commodity report July 18, 2014

Daily Report for Gold

MCX GOLD August future- On Thursday Gold opened on positive note with increased demand from India and china. However the yellow metal saw a steep rise in price, which took it to an intraday high of 28398 before closing at 523 points higher than previous close at 28199, in late session with increased concerns over Ukraine crisis as a Malaysian Aircraft allegedly shot down by pro-Russian rebels of Ukraine in Ukraine’s airspace. Positive Philadelphia fed manufacturing data also forced the investors to buy in the safe haven investment.

Technical Analysis – GOLD - Yesterday gold saw increase in price by 1.89 % and increase in Open Interest by 0.8 % and increase in volume by 53.07 %.  It mostly indicates that investors are buying the asset for delivery. Candlestick pattern is positive and other technical indicators are mixed.  We recommend staying long above 28398 with resistance at 28589 and 28742. Support levels are at 27743 and 27586.

Daily Report for Copper

MCX COPPER August future- On Thursday MCX Copper edged lower in initial trade to 427.85 with concerns over possible bond default by Chinese builder. However the red metal rebounded from its lows to an intraday high of 432.1 before closing at 431.8 with positive Philadelphia fed manufacturing data and Malaysian aircraft crisis.

Technical Analysis – COPPER - On Thursday copper saw increase in price by 0.49%, decrease in Open Interest by 11.6 % and increase in volume by 13.23%. It mostly indicates that Institutional Investors are buying the asset on delivery base. Candlestick pattern is positive and other technical indicators are mixed. We recommend staying long above 432.1 with support at 427.85, 425 and resistance at 435.5 and 437.05