Published on 23/06/2017 2:39:05 PM | Source: Alpha Commodity Ltd

Natural gas prices traded lower - Alpha Commodity

Posted in Commodities Reports | #Commodity Tips #Alpha Commodity Ltd


* Gold silver prices traded volatile with mixed factors in play. Prices traded steady on UK election uncertainty and ECB policy. The dollar index witnessed marginal recovery pressuring the bullion to trade lower. Gold ETF holdings rose to 866.998 tonnes with recent rise in prices.

* Prices are expected to trade lower with FOMC meeting speculation as the FED is expected to raise key interest rates and hence the market is discounting the rate hike effect. The uncertainty over BREXIT will remain after UK election results showed no single majority to any party which may delay BREXIT talks.

* We expect bullion prices to trade sideways to up today with Gold resistance at $1260, support at $1240. Silver resistance at $16.70, support at $16.40. 



* Crude oil prices traded lower post inventory data with higher than expected stock build in US weekly inventory. Prices were trading steady in day trade in the narrow range with tensions in Middle East on Qatar and ample supplies in the market. Prices are currently caught in tug of war between higher supplies and production cut effects.

* US weekly crude oil inventories declined by 2.5mb against previous decline of 1.2 mb. The rising output from Libya and increasing U.S. production has pressured oil prices to trade lower. US oil rigs rose by 8 to 741 rigs at highest in two years.

* Natural gas prices traded lower on weak demand expectations with normal temperatures. Natural gas weekly stocks are expected to rise by 55 Bcf against previous 78 Bcf. Prices is caught in supply demand expectations ahead of summer demand. We expect prices to trade sideways to down with Support at 184/182, resistance at 189/192.


Base Metals

* Prices traded mixed witnessing both side movements. Prices traded positive with positive US data despite demand worries from China. The lack of convincing data from China with BREXIT worries is pressuring the prices. The overall demand outlook kept prices under pressure with rise in LME inventories has put additional pressure on prices.

* Copper prices may trade firm compare to other base metals with supply disruption from Grasberg mine in Chille supported by decline in LME stocks. Zinc prices may get support from recent China production numbers where refined zinc production has declined by 9.9% in May The rising cancelled warrants is also supporting the rally in Zinc prices..

* We expect prices to trade sideways to up with copper support at 365, resistance at 371. Zinc support at 168, resistance at 172 and Nickel support at 565, and resistance at 585.


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