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Weekly Newsletter Newsletter-Commodity Commodity 18/10/2010

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Weekly Newsletter Contents Market Wrap Technical Analysis Gold ( Comex) Silver ( Comex) Crude ( Nymex) Naturalgas ( Nymex) Copper (Comex) USD/INR

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MARKET WRAP Gold up consecutively for fifth week Dollar slips further versus the euro U.S. unemployment claims higher at 462k Copper gained $4 and breached its previous week high of $379.13 SPDR holdings at 1,304.342 vs. 1285.200 tonnes, up by 19.142 tonnes

Gold steadily maintained the uptrend for fifth consecutive week and made a new all time high of

$

1387.11

gaining

almost

$34

after

breaching

its

recent

all

time

high

of

$1374.75. Gold touched weekly low of $1340 and saw some profit booking at all time highs. Gold surged as dollar weakened on expected monetary easing by Fed reserve which could include purchase of treasury’s, which is a strong support for Gold as a currency and inflation hedge, complimented by weak economic data as unemployment claims higher at 462k and core CPI at 0.0% vs. 0.1%. World’s largest gold backed ETF fund, New York’s SPDR reported its holdings at 1,304.342 vs. 1285.200 tonnes, up by 19.142 tonnes or 1.5%.

Copper gained $4 and breached its previous week all time high of $379.13 to touch a new all time high of $385.95. Copper touched the weekly low of $370 to end slightly lower from highs owing to weaker US economic data with unemployment claims higher at 462k and weaker Japanese industrial production at (-)0.5% vs. (-)0.3%. Copper is overall bullish as long as the dollar continues lower trend owing to monetary easing and maintained rebound in Chinese economy while US Empire state manufacturing index came up at 15.1 vs. 7.1 is also positive for copper. Inventories of copper in LME monitored warehouse stocks up 225 tonnes to 371,500 tonnes while COMEX copper warehouse stocks drawn dropped 810 short tonnes to 80,394 tonnes.

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TECHNICAL VIEW GOLD WEEKLY PIVOT SCRIPT GOLD

R4 1506

R3 1459

R2 1412

R1 1390

P 1365

S1 1343

S2 1318

S3 1271

S4 1224

OUTLOOK Trend:- Bullish 87,1420$ Resistance:- 1387 Support:- 1345,1307 1307$ Strategy:- Buy on dips GOLD WEEKLY

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SILVER WEEKLY PIVOT SCRIPT SILVER

R4 30.00

R3 28.01

R2 26.02

R1 25.15

P 24.03

S1 23.16

S2 22.04

S3 20.05

S4 18.06

OUTLOOK Trend:- Bullish Resistance:- 25.15,26.55 25.15,26.55$ Support:- 23.85,23 23.60$ Strategy:- Buy on dips SILVER WEEKLY

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CRUDE WEEKLY PIVOT SCRIPT CRUDE

R4 92.1

R3 88.7

R2 85.4

R1 83.4

P 82.1

S1 80.1

S2 78.8

S3 75.4

S4 72.1

OUTLOOK Trend:- Consolidate Resistance:- 84.10 84.10,86.60$ Support:- 79.90,75 79.90,75.50$ Strategy:- Buy on dips CRUDE WEEKLY

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NATURALGAS WEEKLY PIVOT SCRIPT NG

R4 4.37

R3 4.11

R2 3.86

R1 3.69

P 3.60

S1 3.43

S2 3.34

S3 3.09

S4 2.83

OUTLOOK Trend:- Bearish Resistance:- 3.690, 3.690,4.140$ Support:- 3.425,2.970 2.970$ Strategy:- Sell on high NATURALGAS WEEKLY

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COPPER WEEKLY PIVOT SCRIPT COPPER

R4 425.2

R3 410.1

R2 395.0

R1 388.9

P 379.9

S1 373.7

S2 364.7

S3 349.6

S4 334.5

OUTLOOK Trend:- Bullish Resistance:- 387,403 Support:- 369,356 69,356 Strategy:- Buy on dips COPPER WEEKLY

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USD/INR WEEKLY PIVOT SCRIPT INR

R4 46.60

R3 45.82

R2 45.04

R1 44.55

P 44.26

S1 43.77

S2 43.48

S3 42.70

S4 41.92

OUTLOOK Trend:- Bearish Resistance:- 44.85, 44.85,45.70 Support:- 43.75,42.70 Strategy:- Sell on high USD/INR WEEKLY

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