Commodity weekly script

Bullion

• Gold fell for the second week as the some investors liquidated the position before the end of the year to take the advantage of 10th consecutive annual gain.

• The market appears to be lock in the profits in rallies rather than chase the price higher.

• Gold and silver returns are expected to continuation of strong performance in an environment where central banks keep interest rates low and investment demand remains strong.

How was the performance of bullions this week?

Bullion (contd.)

• The combination of concerns on how Europe's sovereign debt crisis would evolve, and inflation worries down the road, is expected to continue to support gold prices.

• Gold futures for February delivery were down 1.3 percent for this week at $1,366.40 an ounce at on the Comex.

• Silver futures for March delivery rose by 1.8 percent for the week, to $29.133 an ounce on the Comex. The metal has gained 73 percent this year.

Base metals

• Copper climbed up and heading for a third straight weekly gain, as European Union leaders agreed on a plan to contain future debt crises and as economic reports in the U.S. and Germany bolster prospects for metal demand.

• The index of U.S. leading economic indicators increased in November by the most in eight months, a signal the recovery will strengthen early next year. German business confidence gained to a record in December.

• Copper rebounded from London to Shanghai on the better-than-expected U.S. economic data buoyed the demand outlook for the metal used in construction and household appliances

What was trend in base metals during the week?

Base metals (Contd)• Investors are worried over the probable measures by the

china to curb lending and raise interest rates to stem accelerating inflation might put some pressure on the prices.

• Dollar weakness is helping support prices, however it’s really a depreciation of most major currencies including the euro that’s boosting commodities.

• Copper futures for delivery in March added 0.7 percent, to $4.143 a pound on the Comex in New York. the metal surged 43 percent since July 1, as global inventories shrank.

Energy

• Crude oil rose as the index of U.S. leading economic indicators increased in November by the most in eight months, a signal that the recovery will strengthen next year and boost fuel demand.

• Oil gained 0.4 percent on the U.S. report and unexpected increase in German business confidence to a record in December.

• according to the report of American Petroleum Institute, U.S. fuel consumption jumped 6.5 percent in November from a year earlier,.

• The crude market is taking its cues from global and domestic economic growth expectations.

How was the trading scenario in the crude throughout the week?

Energy (Contd)

• According to the report of Energy Department on Dec. 15, U.S. crude stockpiles dropped 9.85 million barrels in the week ended Dec. 10 to 346 million. Supplies are 7.2 percent above the five-year average.

• A report from API showed that the total deliveries of petroleum products, a measure of demand, climbed to 20 million barrels a day last month from 18.8 million in November 2009. Consumption during the first 11 months of 2010 rose 2.4 percent to 19.2 million barrels a day.

Weekly Pivot

Commodity S2 S1 R1 R2

Gold 1351 1367 1382 1398

Silver 28.18 28.72 29.23 29.72

Crude 86.25 87.35 88.58 90.2

Natural Gas 3.88 4 4.23(40DMA) 4.35

Copper 406 411 420 428