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Daily Newsletter Newsletter-Commodity 20/10/2010

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MARKET WRAP Gold was set for its largest one-day fall Dollar gains versus currency basket Oil drops as China lifts rates Copper tumbled from 27-month highs Base metals fall on China rate hike

U.S. crude oil future prices fell more than $2 on Tuesday as the dollar climbed after China's central bank raised interest rates for the first time since 2007 to rein in its booming economy. Copper tumbled from 27-month highs on Tuesday as top metals consumer China raised its interest rates for the first time since 2007 to keep a rein on its surging economy, and as the dollar rose. Gold was set for its largest one-day fall since early July on Tuesday, wiping out all the gains of the last week, as the dollar rose broadly after China surprised markets with its first interest rate hike since 2007.

ECONOMIC CALENDAR Date

Time

Currency

Economic Data

Forecast Previous

Wed Oct 20

1:30am

USD

Fed Chairman Bernanke Speaks

4:30am

USD

FOMC Member Duke Speaks

11:30am

EUR

German PPI m/m

0.2%

0.0%

8:00pm

USD

Crude Oil Inventories

1.5M

-0.4M

11:30pm

USD

Beige Book

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TECHNICAL VIEW GOLD(DEC) Trend Strategy

• Consolidate • Buy on dips

SILVER(DEC DEC) Trend Strategy

• Consolidate • Buy on dips

Resistance

• R2 -20050 • R1 -19770

Resistance

• R2 - 36950 • R1 - 36150

support

• S1 -19510 • S2 -19250

support

• S1 - 35550 • S2 - 34780

COPPER(NOV) Trend Strategy

• Bullish • Buy on dips

CRUDE(OCT)) Trend Strategy

• Consolidate • Buy on dips

Resistance

• R2 - 383 • R1 - 376

Resistance

• R2 - 3720 • R1 - 3645

support

• S1 - 368 • S2 - 361

support

• S1 - 3570 • S2 - 3490

NATURALGAS(OCT) Trend Strategy

• Bearish • Sell on high

LEAD(OCT)) Trend Strategy

• Consolidate • Buy on dips

Resistance

•R2 - 167 •R1 - 159

Resistance

• R2 - 110.5 • R1 - 107.8

support

•S1 - 153 •S2 - 145

support

• S1 - 104.5 •S2 - 101.3

ZINC(OCT) Trend Strategy

• Consolidate • Buy on dips

NICKEL(OCT) NICKEL(OCT Trend Strategy

• Consolidate • Sell on high

Resistance

•R2 - 109.2 •R1 - 106.5

Resistance

•R2 - 1089 •R1 - 1065

support

•S1 - 104.2 •S2 - 101.5

support

•S1 - 1038 •S2 - 1005

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ALUMINIUM(OCT) Trend Strategy

• Consolidate • Sell on high

Resistance

•R2 - 107.9 •R1 - 105.3

support

•S1 - 103.2 •S2 - 100.5

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