CN: Crude may fall as US data shows slowing growth
MCX Gold August future contract opened flat at 18400 per ten grams, made an intraday high at 18421 against previous close of 18400.
MCX Gold Aug contract last traded at 18396 marginally down by 4 rupees after it made an intraday low of 18372. Gold future prices are likely to fall further and may test 18200-18000 during the next few days. Intraday traders can sell Gold 18400 keeping stop loss 18440 with a target price of 18350-18300. Support for the MCX Gold Aug contract is seen at 18200 below it can reach to 18000. Resistance is likely to be seen at 18500 above it can test 18650 levels.
Gold prices have traded in a narrow range of 18200-18500 from last nine trading days. Gold prices are likely to remain uncertain as Dollar weakness has not lifted Gold up. Weaker global economic data this week has increased risks for global economic recovery. US CPI this evening may be a deciding factor for Gold prices.
Silver prices rose slightly yesterday on a weak US dollar and uncertain global markets. MCX Silver Sep contract yesterday ended at 29170 marginally up by 35 rupees made an intraday high at 29340. However, Silver prices are likely to fall and may test 28900 and below it could go up to 28600.
Silver prices last traded at 29132 down by 38 rupees from previous close. Silver prices traded in a narrow range of 28400-29400 from last 13 trading days. For the days ahead, Silver prices may trade sideways with downside bias.
Crude future prices settled lower yesterday on disappointing US economic data. GDP of China which is the second largest Crude oil consumer after U.S. rose by 10.3% in the second quarter down from the 11.9% growth of first quarter.
Support for the MCX Crude July contract is seen at 3530 and below it can reach to 3490. Intraday traders can sell Crude July contract near 3620 with a stop loss of 3650 and target price of 3460-3430. However, growth remains growth unless and until it doesn’t come in negative territory. So, long term Crude outlook is still bullish and every significant fall in Crude prices is a buying opportunity for long term.
