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Daily Newsletter Newsletter-Commodity 28/12/2010

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MARKET WRAP US copper inches up to record dollar edged down against a basket of currencies on Monday Gold regains lost ground as bargain hunting supports Oil eases after 26-month high Silver consolidate and waiting for big trigger

Oil fell on Monday, unraveling gains that took it to a 26-month high, after uncertainty about Chinese fuel demand following a surprise interest rate rise countered the impact of a blizzard in the U.S. Northeast. U.S. and China copper prices were little changed in anemic trade on Monday, touching a fresh record high after dipping briefly in response to China's Christmas Day increase in interest rate. Spot gold regained lost ground on Monday, as bargain hunting trickled in after prices dropped about one percent in early trade in response to China's interest rate increase on Saturday. China's central bank raised interest rates on Saturday for the second time in just over two months as it stepped up its battle to rein in stubbornly high inflation.

ECONOMIC CALENDAR Date

Time

Currency

Economic Data

Tue All Day Dec 28 7:30pm

GBP

Bank Holiday

USD

S&P/CS Composite-20 HPI y/y

8:30pm

USD

CB Consumer Confidence

8:30pm

USD

Richmond Manufacturing Index

Forecast Previous

-0.1%

0.6%

56.3

54.1

11

9

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TECHNICAL VIEW GOLD(FEB) Trend Strategy

• Consolidate • Buy on dips

SILVER(MAR MAR) Trend Strategy

• Consolidate • Buy on dips

Resistance

• R2 -20890 • R1 -20570

Resistance

• R2 - 45750 • R1 - 44750

support

• S1 -20410 • S2 -20150

support

• S1 - 43750 • S2 - 42950

COPPER(FEB) Trend Strategy

• Bullish • Buy on dips

CRUDE(JAN)) Trend Strategy

• Bullish • Buy on dips

Resistance

• R2 - 442 • R1 - 433

Resistance

• R2 - 4270 • R1 - 4190

support

• S1 - 423 • S2 - 414

support

• S1 - 4110 • S2 - 4030

NATURALGAS(JAN) Trend Strategy

• Consolidate • Sell on high

LEAD(DEC)) Trend Strategy

• Consolidate • Buy on dips

Resistance

•R2 - 201 •R1 - 193

Resistance

• R2 - 114.3 • R1 - 111.9

support

•S1 - 183 •S2 - 175

support

• S1 - 109.3 •S2 - 106.5

ZINC(DEC) Trend Strategy

• Consolidate • Sell on high

NICKEL(DEC) NICKEL(DEC Trend Strategy

• Consolidate • Sell on high

Resistance

•R2 - 107.5 •R1 - 105.1

Resistance

•R2 - 1118 •R1 - 1097

support

•S1 - 102.8 •S2 - 98.5

support

•S1 - 1068 •S2 - 1045

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ALUMINIUM(DEC) Trend Strategy

• Consolidate • Buy on dips

Resistance

•R2 - 113.8 •R1 - 110.9

support

•S1 - 108.9 •S2 - 106.7

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