COM: Dollar Index Rally to swallow Commodities, selling recommended
AHMEDABAD (Commodity Online):The Dollar Index (basket of 6 major currencies against Dollar) is looking positive and climbing with strong rally again,with dollar index at 79.31 pushing Bullion down conversely the Euro/USD is weak at 1.33 compelling Base Metals to make lower lows. “Cash is King” principle seems to be prevailing into current markets.
China central bank has lowered the reserve requirement ratio for six rural banks in Zhejiang province by 50 bps, effective from today.
Gold has gone below Rs 28500 on MCX which has crucial support of 28200 at downside.
Copper also decline on short selling along with Nickel and Lead. Copper for delivery in November declined by 0.80% or Rs 3 Rs at 374 and tested a high of Rs 377 in intraday. The contract was trading below 5-day Exponential Moving Average.
Nickel made high of Rs 895 on MCX and low of Rs 886.20 during intraday trading. Zinc also depreciated by 0.35% at Rs 98.55. Lead drooped by 0.75% at Rs 102.30. while, Aluminium plunged by 0.35% at Rs 104.355 on MCX.
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