Commodity Next Week

Fundamental View

• Next week may continue to see investors going long or covering their short positions in the greenback
• Continued rebound in the dollar is likely which will keep precious metals lower
• Falling net long positions in gold and silver futures give an indication of speculators changing their bets

Technical Calls For Newxt Week -

Commodity	S3	s1	s2	R1	R2	R3	Recommendation
COMEX Dec Gold	1262	1280	1300	1339	1365	1388	Sell 1338/35 TP 1305  SL 1352
MCX Dec Gold	19070	19220	19350	19620	19780	19920	Sideways
MCX Nove Gold M	18940	19070	19200	19420	19650	19880	Sell 1st 2 lots  at 19380  and 2nd 2  lots at 19500 TP 19070 SL above 19680
COMEX Dec Silver	21.80	22.1	22.52	23.58	24.01	24.6	Sell 23.70/60  TP 22.20  SL 24.01
MCX Dec Silver	33860	34200	34680	35650	35650	36000	Sideways
MCX Nove Gold M	33860	34200	34680	35650	35650	36000	Sell 1st  2 lots  at 35450 and  2nd 2 lots at 35650 TP34200  SL above 36050

The Week ahead-

Reversal in the dollar index caused precious metals to take a backseat this week which may remain lower next week Monday as well. Those who were betting against the dollar earlier are now changing their Tuesday bets and going long in the greenback. Next week may continue to see investors Wednesday going long or covering their short positions in the greenback, supported by Friday the U.S. official statements which restored investors' confidence in the dollar. Moreover, housing reports in the form of existing home sales and new home sales may also come positive.

Durable goods orders are expected to rise. GDP and personal consumption may have also risen in third quarter which will help the dollar index continue its rebound. UK GDP growth slowed down to 0.40% in 3Q against 1.20% rise in the quarter before. Weakness in other currencies will also provide gains to the greenback. KCTL expects continued rebound in the dollar index which will in turn pressurize precious metals.

Posted in: Commodity next week