Daily Commodity Report

Gold & Silver overview:

Gold traded above the 73000 mark after the release of US Consumer Price Index data for June, which shows pricing pressure is cooling. The data stood lower than expected, which made it more likely that the Fed will be able to cut interest rates in the near term, supporting gold prices.

Silver drives higher yesterday after the release of US CPI data paints a picture of a cooling economy, suggesting interest rates in the US will fall, which in the process will make bullion prices a more attractive investment. The US CPI rose 3.0% year-on-year in June, falling below estimates of 3.1% and the previous month's 3.3%. CPI declined 0.1% on a month-over-month basis in June, when economists had expected a 0.1% rise from 0.0% in May.

Technical levels:

GOLD: Gold prices in MCX may remain upside today and any correction in its prices could be a buying opportunity. Gold has support at 72000 and resistance at 74000.

SILVER: The day trend may remain down in silver. It has support at 92000 and resistance at 95000.

Crude oil & Natural gas overview:

Crude oil prices remained up marginally in the previous trading session. The oil market is continuing to try to judge if the economy is going to remain growing or if it is going to roll over. However, the better demand forecast for the rest of the year supports crude oil prices.

The natural gas prices extended the losses of the prior session as the forecast of weak demand for the second half of the July month may remain weaker. And, the natural gas storage data released yesterday, increased to 65B from 32B,, putting fresh selling pressure on the prices.

Technical levels:

CRUDE OIL: The day trend in crude oil may remain range-bound today. It has support at 6700 and resistance at 7000.

NATURAL GAS: Technically, the day trend may remain down in natural gas. It has support at 180 and resistance at 200.

Base metals overview:

Subdued copper demand in top consumer China and the delivery of surplus metal to the London Metal Exchange (LME) approved warehouses has propelled the price discount for nearby contracts against the benchmark contract to record highs. The contango or discount for the LME cash contract over the benchmark or three-month forward jumped above $160 a metric ton this week compared with levels around $70 only two months ago. source: minning.com

Technical levels:

COPPER: The trend may remain range-bound to downside today. It has support at 850 and resistance at 870.

ZINC: The prices are likely to be down today. It has support at 266 and resistance at 278.

ALUMINIUM: The day trend may remain down and below support levels, selling pressure is likely to be increased. It has support at 227.50 and resistance at 232.