Market Analysis and Commodities on My Radar

Among a lot of uncertainties like – trade war and global economic slowdown, Commodity and Equities markets are in extreme pressure while bullion and bond market taking benefits from these uncertainties. The wound in metals commodities and oil & gas are not going to heal soon. While Indian equities are also venerable to follow the global market and likely to fall after a poor growth rate of 6.8%.

Among a lot of uncertainties, there are few Commodities on my radar –

1. Natural Gas: Lower demand, unfavorable weather and trade war all have dragged the Natural Gas price lower. After weekly EIA data in which natural gas storage increased above the forecast, last Thursday and Friday we have seen major fall in Natural gas price. Currently, Natural Gas price is trading near 2.45 on COMEX and on MCX Friday low was 171.90 and managed to close at 172.60. In my point of view, Natural Gas price looks attractive at these levels for short to medium term but it will be foolishness to predict a quick reversal in the trend.

2. Zinc: I have also written it before, in my previous post that among all base metals zinc is relatively good and has not fallen much. It may try to make a base at this level. I will watch 205 level on MCX and 2500 level on LME. If Zinc firmly holds these levels the price should stabilize and a slow recovery can be expected.

Update: China Caixin Manufacturing PMI of May month came 50.2 as it was the previous month but above the forecast of 50.0.

Disclosure: This is my personal view and not trading or investment advice.