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RESEARCH

WEEKLY
COMMODITY REPORT
Silver Gains In Unison With Gold!

18th Oct 2010 to 23rd Oct 2010

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 Weekly Report Commodity
18th OctWeekly Commodity
to 23rd Oct 2010 Report
1st March to 6th Mar 2010
RESEARCH
RESEARCH

ECONOMIC DATA
Date Time Currency Economic Data Forecast Previous

Mon 9:00am TIC Long-Term Purchases

USD 61.2B
Oct 18
9:15am USD Capacity Utilization Rate 74.8% 74.7%

9:15am USD Industrial Production m/m 0.3% 0.2%

10:00am USD NAHB Housing Market Index 14 13

Tue 8:30am Building Permits

USD 0.58M 0.57M
Oct 19
8:30am USD Housing Starts 0.59M 0.60M

10:00am USD FOMC Member Dudley Speaks

7:00pm USD FOMC Member Duke Speaks

Wed 10:30am Crude Oil Inventories

USD -0.4M
Oct 20
2:00pm USD Beige Book

Thu 8:30am Unemployment Claims

USD 455K 462K
Oct 21
10:00am USD Philly Fed Manufacturing Index 0.5 -0.7

10:00am USD CB Leading Index m/m 0.2% 0.3%

10:30am USD Natural Gas Storage

2:00pm USD FOMC Member Bullard Speaks

9:45pm USD FOMC Member Hoenig Speaks

Fri Day 1 G20 Meetings

ALL
Oct 22

Sat Day 2 G20 Meetings

ALL
Oct 23

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 Weekly Report Commodity
18th OctWeekly Commodity
to 23rd Oct 2010 Report
1st March to 6th Mar 2010
RESEARCH
RESEARCH

Fundamental Market Overview

U.S. gold futures ended lower on Friday, after a two-day record-setting rally, as investors took profits on a dollar
U.S. GOLD ENDS bounce and as Fed Chairman Ben Bernanke offered few new details on further economic stimulus. U.S. central
LOWER ON DOLLAR bank is likely to adopt easier monetary policy as soon as its next meeting in November. But he failed to offer the
RISE VS EURO details that some gold investors are craving to sustain the rally. New York State reduced investor anxiety
somewhat and triggered profit-taking in gold, which is viewed as a safe haven investment. Estimated gold
volume at a busy 185,025 lots, about 31 percent above its 30-day average. Spot gold was trading down 0.8
percent at $1,366.15 an ounce.

Oil prices fell nearly 2 percent in light, volatile trading on Friday, posting their first weekly loss in four weeks, as
OIL DOWN FIRST options expired and the dollar rose, sparking profit-taking ahead of the weekend. Oil prices rose early in the
WEEK IN FOUR ON session after U.S. Federal Reserve Chairman Ben Bernanke signaled that the central bank would likely pump
more money into the sagging economy. But prices weakened later on the view that any such quantitative
OPTIONS, DOLLAR
easing was already priced in the market and as the dollar rose on profit-taking, with traders saying its recent
decline was overdone. A stronger dollar makes commodities like oil more expensive for buyers holding other
currencies. On the New York Mercantile Exchange, crude for November delivery settled down $1.44, or 1.74 percent, at $81.25 a barrel, after
trading from $80.75 to $83.33 volume was around 661,000 lots. For the week, front-month NYMEX crude fell $1.41, or 1.71 percent. At the
start of the day, put options contracts that grant the right to sell at a specific price by a certain date -- were concentrated on the $82, $81 and
$80 levels.

QUANTITATIVE EASING CONCERNS

Oil investors also raised questions about the size and the timing of the widely expected purchases of government debt by the central bank in a
second round of quantitative easing measures. The unease prompted profit-taking. Economic reports kept pressure on the Fed to act soon to
lessen the risk of a downward price spiral. U.S. inflation unexpectedly slowed in September, despite a pick-up in retail sales, the government
said. A survey showed U.S. consumer sentiment unexpectedly dipped in early October to its weakest level since July, with buying plans
declining. OPEC's secretary general said oil prices of $75 to $85 a barrel would not hold back the global economy. Some members of the
Organization of the Petroleum Exporting Countries have called for higher prices to compensate for a weak U.S. dollar. OPEC decided on
Thursday to leave its oil output policy unchanged, as it has done since agreeing to a record output cut in December 2008.

U.S. copper futures ended up for a fifth consecutive weekly gain on Friday, with a spike in regional
US COPPER ENDS UP manufacturing activity helping to keep prices buoyed near 27-month highs, even in the face of a firmer dollar.
FOR 5TH STRAIGHT Copper for December delivery rose 2.35 cents to settle at $3.8390 per lb on the COMEX metals division of the
WEEK; BUCKS DLR New York Mercantile Exchange. Range from $3.7945 to $3.8645. On Thursday, benchmark December
contract rallied to $3.8675, which marked highest level for third-position futures contract since July 7, 2008.
COMEX estimated final copper futures volume at 45,903 lots, above Thursday's tally of 37,341 lots. Open
interest up 342 lots at 160,061 contracts as of Oct. 14. Manufacturing activity in New York State jumped in October, lifted by improvements in
new orders and shipments, according to the New York Fed's "Empire State" business index. Copper further supported by stronger-than-
expected 0.6 percent rise in September retail sales. U.S. copper imports fell to a one-year low, snapping string of four consecutive monthly
increases, suggesting a decelerating economy. London Metal Exchange (LME) warehouse stocks fell by 475 tonnes to 371,025 tonnes on
Friday. Copper inventories in Shanghai warehouses rose 9.9 percent to 103,510 tonnes from week earlier - exchange data. COMEX copper
warehouse stocks drawn down 958 short tons to 79,436 tons as of Thursday. LME copper ended flat at $8,400 a tonne.

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 Weekly Report Commodity
18th OctWeekly Commodity
to 23rd Oct 2010 Report
1st March to 6th Mar 2010
RESEARCH
RESEARCH

Technical Analysis

GOLD
Weekly Pivots

SCRIPT R4 R3 R2 R1 P S1 S2 S3 S4

GOLD 1508 1461 1414 1393 1367 1346 1320 1273 1226

Weekly Chart

Market Overview Strategy

COMEX Gold is in a bullish phase. Last week COMEX Gold
sustained above the level of 1340$ and made a high of 1388$ an
ounce. In the coming week 1270$ will act as a major support in
COMEX Gold, if COMEX Gold sustains above 1340$ an ounce
then above 1400$ an ounce it can touch the level of 1420$ an
ounce and if COMEX Gold sustains below 1300$ then it can
slightly correct and test the level of 1270$ an ounce.
For the next week traders can use buy on lower level strategy if
COMEX Gold sustains above 1340$ an ounce, then above 1400$
it can further go upward and can test the level of 1420$ an ounce.
Trade by keeping the strict stop losses.
Major support for COMEX Gold in the coming week would be
1310$ and 1270$.
Major resistance for COMEX Gold in the coming week would be
1401$ and 1425$
Major support in MCX Gold is 19550 and 19300
Major resistance in MCX Gold is 20200 and 20500

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 Weekly Report Commodity
18th OctWeekly Commodity
to 23rd Oct 2010 Report
1st March to 6th Mar 2010
RESEARCH
RESEARCH

SILVER
Weekly Pivots

SCRIPT R4 R3 R2 R1 P S1 S2 S3 S4

SILVER 3007 2807 2606 2517 2406 2317 2205 2005 1804

Weekly Chart

Market Overview Strategy

COMEX Silver is in a bullish phase. Last week COMEX Silver
sustained above the level of 2350$ an ounce. For the upcoming
week 2285$ and 2160$ are the crucial supports and 2500$ and
2580$ are crucial resistance in COMEX Silver. In MCX Silver 37000
and 38800 will act as major resistance and 34900 and 33500 will
act as major supports.
For the next week traders can use buy on lower level strategy if
Silver sustains above the level of 2350$ an ounce, then above
2500$ an ounce it can further go upward and might test the level
of 2550$. Trade by keeping the proper stop losses.

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 Weekly Report Commodity
18th OctWeekly Commodity
to 23rd Oct 2010 Report
1st March to 6th Mar 2010
RESEARCH
RESEARCH

CRUDE OIL
Weekly Pivots

SCRIPT R4 R3 R2 R1 P S1 S2 S3 S4

CRUDE 92.15 88.78 85.41 83.33 82.04 79.96 78.67 75.30 71.93

Weekly Chart

Market Overview Strategy

NYMEX Crude is consolidating on charts. Last week Crude Oil
break the important level of 84$ but was not able to sustain near
it. For the coming week 80$ will act as major support and 86$ a
barrel will be a major resistance. In MCX Crude Oil for the next
week major resistance is found at 3735 and 3880 and major
supports will be 3550 and 3475.
For the next week traders can use buy on lower level strategy, if
NYMEX Crude break the level of 84.5$ a barrel and sustains above
that then it can slightly come up and touch the level of 86$ a
barrel. Trade by keeping the proper stop loss.

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 Weekly Report Commodity
18th OctWeekly Commodity
to 23rd Oct 2010 Report
1st March to 6th Mar 2010
RESEARCH
RESEARCH

COPPER
Weekly Pivots

SCRIPT R4 R3 R2 R1 P S1 S2 S3 S4

COPPER 425.80 410.80 395.80 389.85 380.80 374.85 365.80 350.80 335.80

Weekly Chart

Market Overview Strategy

Copper is in an upward consolidation phase and traders should For the upcoming week 390 and 410 will act as major resistance
use the strategy of buying on lower levels. COMEX Copper did and 365 and 340 will act as major supports in COMEX Copper. For
break the level of 379 last week and sustained above it. If next MCX Copper major resistance would be 378 and 388 and
week COMEX Copper sustains above the level of 380 then above supports would be found at 367 and 357.
the level of 386 Copper can test the level of 394. In MCX Copper
above 378 Copper can test the level of 383 if it does not break the
level of 367 on the downside.

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 Weekly Report Commodity
18th OctWeekly Commodity
to 23rd Oct 2010 Report
1st March to 6th Mar 2010
RESEARCH
RESEARCH

NATURAL GAS
Weekly Pivots

SCRIPT R4 R3 R2 R1 P S1 S2 S3 S4

NG 4.382 4.125 3.868 3.701 3.611 3.444 3.354 3.097 2.840

Weekly Chart

Market Overview Strategy

Natural Gas is in a downward phase and traders should use the For the upcoming week 3.450$ and 3.150$ will act as major
strategy of selling on higher levels. Last week Natural Gas break supports and 3.900$ and 4.150$ will act as major resistance in US
the important level of 3.600. If next week Natural Gas sustains Natural Gas. For MCX Natural Gas major resistance would be 175
below the level of 3.500$ then below the level of 3.450$ Natural and 191 and supports would be found at 152 and 143.
Gas can test the level of 3.300$ and above 3.900$ Natural Gas can
slightly go up and test the level of 4.050$. In MCX, if Natural Gas
sustains below 150 then it can test the level of 143 if it does not
break the level of 168 on the upside.

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 Weekly Report Commodity
18th OctWeekly Commodity
to 23rd Oct 2010 Report
1st March to 6th Mar 2010
RESEARCH
RESEARCH

USD/INR
Weekly Pivots

SCRIPT R4 R3 R2 R1 P S1 S2 S3 S4

USD/INR 46.6030 45.8230 45.0430 44.5470 44.2630 43.7670 43.4830 42.7030 41.9230

Weekly Chart

Market Overview Strategy

USD/INR is bearish on charts so traders should use the strategy of
selling on higher levels. If next week USD/INR sustains below the
level of 44.7000 then below the level of 43.9000 USD/INR can test
the level of 43.5000 and above 44.8000 USD/INR can slightly go
up and test the level of 45.3000.
For the upcoming week 43.5000 and 43.1000 will act as major
supports and 44.8000 and 45.7000 will act as major resistance in
USD/INR.

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 Weekly Report Commodity
18th OctWeekly Commodity
to 23rd Oct 2010 Report
1st March to 6th Mar 2010
RESEARCH
RESEARCH

Weekly Pivots
Scripts R3 R2 R1 PP S1 S2 S3

GOLD 20777.33 20294.33 20077.67 19811.33 19594.67 19328.33 18845.33

SILVER 40645.67 38283.67 37268.33 35921.67 34906.33 33559.67 31197.67

COPPER 393.60 383.50 379.60 373.40 369.50 363.30 353.20

CRUDE 3905.33 3772.33 3691.67 3639.33 3558.67 3506.33 3373.33

NATURAL GAS 184.83 172.63 164.57 160.43 152.37 148.23 136.03

LEAD 119.23 112.23 109.22 105.23 102.22 98.23 91.23

ZINC 116.13 110.53 108.32 104.93 102.72 99.33 93.73

NICKEL 1163.60 1119.70 1094.10 1075.80 1050.20 1031.90 988.00

ALUMINUM 113.10 109.45 107.30 105.80 103.65 102.15 98.50

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 Weekly Report Commodity
18th OctWeekly Commodity
to 23rd Oct 2010 Report
1st March to 6th Mar 2010
RESEARCH
RESEARCH

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