Global markets melted after Sino-U.S. tariff war heated as the concerns for weaker demand and growth rate were looming in U.S., which affected the greenback but in turn push the precious metal prices and made it more precious. MCX Gold started the week on a flat note but the galloping concerns of tariff war between largest economies heat up the gold prices making it closed at 32,098 levels, gaining 2.03%.
Next week, we are not expecting any kind of reversal in the yellow metal prices as the precious metal has formed a ‘Marubozu’ candle stick pattern, which signals the strength of the bulls. On daily scale, the counter is closed near the edge of a ‘Descending Triangle’ and expected to witness more upside once it will trade above 32,124 levels. The precious metal is closed near 89 days (High-Low) Moving Average. Relative Strength Index is hinting for more upside.
MCX Crude Oil
MCX Crude Oil remained in the grip of bears last week even after Energy Information Administration data showed commercial U.S. crude inventories fall by 0.282 million barrels in the week ended May 24, to 476.518 million barrels. In order to curb the falling prices of crude oil, OPEC club came forward by presenting a supply cut that might act as a catalyst but the halting concerns of expected weaker demand for crude oil due to Sino-U.S. tariff outperformed and the black gold continued to fall closed at 3,776 levels, erased 7.2% last week. The short positions placed by the potential traders due to Sino-U.S. tariff war were enough to drag the black gold below 200 days Simple Moving Average.
Next week, we are not expecting any revival in the black gold as it’s not an easy walk for bulls to remain strong under 200 days Simple Moving Average. Although some consolidation could be witnessed near 3,656 levels as it will act as a potential support but a breakout below these levels could trigger sellers and more downside will be witnessed by the market participants till 3,089 levels. RSI and Awesome oscillator are showing no signs of divergence and oversold situation and favoring bears.
MCX Natural Gas
The natural gas market initiated the week on a decent note and delivered mild gains but the weakness started galloping after the Energy Information Administration (EIA) came with stockpiles of Natural Gas storage 114 cubic feet. Global slowdown is going to add more spice as the demand for the natural gas is likely to fall beyond the lack of demand for heating in the northern hemisphere until the month of November.
Next week, we are not expecting any upside in the counter as it has formed a bearish ‘Marubozu’ candle stick pattern, on daily scale. The counter is closed near the kissing distance of its previous lows that is placed at 170 levels. Awesome oscillator and RSI are hinting for more downside.