CPO Facing Weak Spot Tracking Overseas Market

CPO trading range for the day is 563.53-572.33. Market is looking to take support at 565.2, a break below could see a test of 563.5 and resistance is likely to be seen at 569.6, a move above could see prices testing 572.3. In Saturday's trading session Crude Palm oil has touched the low of 566.3 after opening at 569.9, and finally settled at 566.8.

Crude Palm oil Saturday traded with the negative node and settled -0.07% down at 566.8 on the back of weak spot market tracking weakness in overseas market. Easing fears of tightening global vegoil supplies following forecasts for rain across the drought-hit U.S. Midwest in the next week and Palm oil's weak technicals limited gains.

MCX CPO settled marginally higher last week as expensive imports of Edible oil are making the same costlier for the domestic markets thus restricting sharp downside in oil prices. Market players expect slowing exports to lead to higher stocks for July as industry regulator Malaysian Palm Oil Board releases official data on July 10.

CPO futures prices for August contract at MCX dropped to Rs.566.8/10 kg down by 0.07%. Stock levels which seem to have improved on lower exports in recent months and a seasonal rise in palm oil production in Malaysia may add weight on Palm oil prices in international futures markets.

Traders are also looking out for weather concerns closer to Southeast Asia, as the El Nino's dry weather pattern may return by end of the year and could hurt production for top Palm oil producers Indonesia and Malaysia.

Gold again makes slow progress, mostly on rebounds
Gold trading range for the day is 29862-29930. Technically market is trading in the range as RSI for 18 days is currently indicating 49.82, where as 50 DMA is at 30019.6 and gold is trading below the same and getting support at 29883 and below could see a test of 29862 level, And resistance is now likely to be seen at 29917, a move above could see prices testing 29930.

Gold ended lower on rupee firmness but downside was limited as the dollar slid and equities rallied on data showing US hiring picked up more than expected in July, even as a rise in the unemployment rate fed investor hopes for monetary stimulus from the Federal Reserve.

Spot Gold prices declined by 1.2 percent in the last week as Federal Open Market Committee disappointed the market participants over more monetary easing which led to negative market sentiments thereby causing rise in the demand for low yielding currency that is US Dollar Index (DX). However, prices bounced back on Friday on positive data from the US but failed to recover earlier losses of the week.

The yellow metal touched a low of $1584.49/oz during the week and closed at $1603.80/oz in the last trading session. On the MCX, Gold October contract gained by 0.4 percent and closed at Rs.29,905/10 gms on Friday after touching a high of Rs.30396/10 gms. However, appreciation in the Indian Rupee capped sharp gains in prices on the MCX.

Holdings in the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, increased by 0.5 percent and stood at 1254.94 tonnes on July 27, 2012 as compared to 1248.61 tonnes on July 27, 2012.

Silver hardly moves irking intraday expecations
Silver trading range for the day is 53228-53346. Technically market is trading in the range as RSI for 18 days is currently indicating 46.76, where as 50 DMA is at 53878.9 and Silver is trading below the same and getting support at 53252 and below could see a test of 53228 level, And resistance is likely to be seen at 53311, a move above could see prices testing 53346.

Silver closed flat on Saturday at 53275 but had seen a very good rally on Friday when the US labour data beat market expectations, encouraging risk appetite and weighing on the dollar. Meanwhile the CME Group plans to cut margins for COMEX Silver futures for the third time since February to help boost trading interest, as stagnant prices sapped investor appetite.

Spot Silver prices gained by 0.3 percent during the week on account of weakness in the DX coupled with upbeat global market sentiments.

The white metal touched a high of $28.37/oz in the last week and closed at $27.80/oz in the last trading session of the week. In the Indian markets prices gained by 0.2 percent and closed at Rs.53,317/kg on Friday after touching a high of Rs.54319/kg in the last week.

On a weekly basis, holdings in the iShares Silver Trust, the world's largest silver-backed exchange-traded fund, increased by 1.24 percent to 9759.01 tonnes on 3rd August 2012 from previous level at 9639.42 tonnes on 27th July 2012.