Crude remains strong – mixed trend in metals, now investment strategy made in which commodity

After the sharp fall of last week, gold seems to be recovering now. The effect of the Fed’s commentary has almost seized the prices. Long term outlook is still positive but there are no major bullish triggers for the time being. So, what should be the strategy in gold for the next few weeks, should those who want to buy jewelery should buy at the current level and how much has the recent fall affected the demand.

Here crude oil prices remain firm. Brent prices above $75. Crude is getting support from declining global inventories and better demand outlook. There is a mixed trend in metals today.

gold in short range

Gold on MCX is again trading close to Rs 47000. Gold prices are getting support due to weakness in dollar. Signs of sluggishness in the US label market are providing support. The US Federal Reserve has said that it will not raise rates soon.

Silver edge

Silver is trading close to Rs 68,000 on MCX. Silver is getting support due to weakness in dollar.

Crude remains firm

The price of Brent remains above $75. For the fifth week in a row, it seems to be on an upward trend. The decline in global inventory has strengthened. Support is coming from better demand outlook. OPEC+ has a meeting on 1 July. OPEC+ may increase production in August.

Mixed trend in metals

Base metals are getting support due to weakness in dollar. Ahead of the auction of China’s State Reserve, lethargy is being seen. China will auction the metal from the reserve on July 5-6. China will auction 20,000 tonnes of copper in the first batch. China will auction 50,000 tonnes of aluminum. China will also auction 30,000 tonnes of zinc. China’s copper exports increased for the third consecutive month.

Investment Advice from Dharmesh Bhatia of Emirates NBD

Buy June Crude oil 5420, SL 5380 TGT 5488
Buy June Nat gas  251 SL 245 TGT 260
Buy Silver July 67700, SL 67300 TGT 68150
Buy Gold Aug 46800, SL 46600 TGT 47150
Sell June Aluminum 195,SL 197 TGT 191
Sell June Nickel 1380, SL 1399 TGT 1355
Sell June Zinc 238 , SL 240 TGT 234
Sell June Lead 172,SL 175 TGT 167
Sell June Copper 727 SL 730 TGT 722
Buy USD/INR @ 74.10 SL 74.00 TGT 74.66

Investment Advice by Vandana Bharti of SMC Comtrade

Buy chana july @ 5150, tgt 5200, sl 5125
Buy guar seed july@4025, tgt 4100, sl 3990

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