Crude oil boom continues unabated. Brent prices have reached close to $ 67. Since the beginning of the year, crude has seen a growth of about 28 percent. Crude prices are rising due to tight supply and demand recovery.
Brent’s price is trading above the $ 66 level. Brent price is trading at a 13-month high. Crude oil is seeing a boom due to supply constraints. US crude production is seeing a 10% drop. US crude inventories increased by 12.8 million barrels. In Europe, inventory is the lowest since September.
Goldman Sachs speculated on crude that Brent could go up to $ 75 in Q3. While Morgan Stanley believes that Brent could go up to $ 70 in the third quarter, while Bank of America estimates that Brent could go up to $ 70 in Q2.
Boom in metals
The prices of base metals continue to rise. It is showing enthusiasm in hopes of economic recovery. Tight supply, strong demand is showing enthusiasm in metals. There has been a decrease in inventory at the exchange warehouse. Relief packages in the US are seeing a boom.
There is a flat business in gold. Increased bond yields in the US support prices but there is no new trigger for the uptrend. However, silver is trading strongly. Industrial demand and metals are increasingly shining in silver.
Gold in a small circle
Gold price on MCX has reached the level of Rs 46,500 per 10 grams. Gold slipped below $ 1,800 on Comex. The bond yield in the US is showing pressure on gold. The US bond yield has reached a level of 1.40 per cent. Gold is getting little support from the statement of the Fed chairman. Gold ETF has been seen selling for the 7th week in a row.
Strength in silver
Silver on MCX has crossed Rs 70,000 per kg. Silver continues to shine due to strong industrial demand. Silver is gaining support in base metals very fast.
Investment advice by Ajay Kedia of Kedia Commodity
BUY GOLD APR @ 46350 SL 46100 TGT 46850
BUY SILVER MAR @ 69600 SL 68700 TGT 70800
BUY CRUDE OIL MAR @ 4560 SL 4500 TGT 4680
BUY ZINC MAR @ 228 SL 222 TGT 240
BUY SOYABEAN MAR @ 5020 SL 4970 TGT 5100
BUY DHANIYA APR @ 7000 SL 6900 TGT 7200
BUY GUAR GUM MAR @ 6150 SL 6000 TGT 6400
Investment advice by T Gnanasekar of Comm Trendz Research
MCX Gold Apr: Buy dips to 46,375 s/l 46,200 tgt 46950
MCX Silver May: Buy dips to 70900 s/l 70550 tgt 72000
MCX Crude Mar: Buy dips to 4522 s/l 4475 tgt 4620
MCX Copper Mar: Buy dips to 723 s/l 721 tgt 735.