MCX Gold

No doubt, the continued optimism over the ‘Phase one’ trade deal between U.S-China and better-than-expected numbers of GDP reported by Bureau of economic Analysis (U.S.) as the growth in economy has increased at an annual rate of 2.1% and slippage in Initial Jobless Claims reported by Department of Labor that considers the citizens of U.S. whop have applied for Jobless claims for the very first time to 213K was enough to fade the shine precious metal in first half of the week. However, the support provided by U.S. President to Hong Kong protesters against the ‘One Country Two Systems’ policy by signing two bills that market veterans are considering for no trade deal and execution of tariffs on China from Dec 15 that kicked-off the gold prices after ‘ThanksGiving Day’.

Major Concern Next Week

The Chinese Foreign minister has not found the signing of two bills from U.S. President Trump cheerful for them  as it has insulted the Chinese’ sovereignty, rights and growth. Moreover, the recent act is likely to keep the investors tilted towards safe-haven. However, market will keep a close eye over ISM Manufacturing PMI data, Jobless Claims, Non-Farm Payrolls.

Weekly Trading Strategy

On daily scale, MCX Gold has been bounced back after the successful re-test of previous a low that was placed at 37,540 levels. The precious metal is closed above 20 days Exponential Moving Average. RSI has been bounced back after sensing support from 40 levels.

We are expecting a breach of 38,140 levels will activate more buyers to a high of 38,400 and 38,786 levels respectively.

MCX Crude Oil

Despite the supportive signals from the two dragon economies on advancement towards the climax of trade deal and accommodative framework provided by OPEC and its allies though production cuts in order to provide a cushion for the inefficiency of crude oil prices, MCX Crude Oil was opened on a negative note and started moving back and forth in the tug of war provided by impressive numbers of GDP as the growth in U.S. economy has increased at an annual rate of 2.1% and build of crude oil inventories reported by Energy Information Administration. However, the black gold started gaining strength but market participants hammered the black gold prices on Friday ahead of OPEC meet in Vienna that will guide the further direction of the counter.

As per the EIA Report, crude oil inventories reported a buildup of 1.572 million barrels last week. The greenback government reported that the U.S. stockpiles now stand at 461.481 million barrels on Nov 22.

Major Concern Next Week

Even though the supply decision from OPEC and its allies will continue to keep a lid over the black gold prices but still a favorable decision from the alliance could not support the falling prices as the demand slippages will continue to remain a concern for market participants. Moreover, the optimism over trade deal between U.S-China is fading away as U.S President Trump is going to slap more tariffs to be initiated from Dec 15, if the deal fails to take place.

Weekly Trading Strategy

On daily scale, MCX Crude Oil is slipped below the ‘Rising Channel’ that signals for a bearish reversal after a consolidated positive move. The black gold is expected to extend its losses after breaching 3,968 levels. Stochastic oscillator has given a bearish crossover.  RSI is closed at 44.85 levels below the trend line placed.

Next week, a breach of 3,960 levels will trigger the breakout of ‘Rising Channel’ formed on hourly scale and activate more sellers to a low of 3,850 and 3,800 levels respectively.