gold is endeavouring to reach $ 1820, but has a resistance at $1763.

COMMODITIES

From the very beginning mankind has known the importance of commodities in life and exchange of commodities was the starting point of business. Even today it has got a good hold on the trading world. When there are many more options, quite a few people are avid commodity traders.

Why should anybody get into commodity ? Let’s start with the factors which favour commodities trading or investment. It’s not disconnected from other entities of trading arena. We have to look everything in entirety.

GOLD

Updates: Gold is a precious metal always in demand but due to high level of uncertainties in the economic environment, it’s demand will increase in future leaps and bounds. It has crossed the immediate resistance level of $ 1640 and is heading towards $1760.

Technical: Gold is widely considered to be an effective hedge against inflation which means that when the dollar depreciates, demand for gold increases. In addition, during times of economic and political uncertainty, the demand for Gold rises due to its high intrinsic value and relative stability. Gold is valued in India as a savings and investment vehicle and is the second preferred investment after bank deposits. Highest consumers of gold are India and China and highest producers are China and Australia.

SILVER

Updates: Silver is also utilized in industry but is used as jewelry as well, has good support at $ 26.00 with upwards bias.

Technical: Silver is a precious metal that is used in a wide array of industrial applications as well as in jewelry. Industrial applications are in the manufacturing of computers, cell phones, TV, batteries, pharmaceuticals and photographic film. Demand for silver has been growing faster than annual production. Silver is a metal that is associated with metals like gold, lead, zinc and copper, though it’s unusual properties makes it very different from them. It is considered as a precious metal second to gold but its contribution in the various industrial sectors as a raw material makes it unmatchable. No other metal can replace silver as it has an endless number of uses.

Peru is highest producer and China/India largest consumer of silver.

COPPER

Updates: Further Industrial expansions in the world is coming a pause thus, copper prices are also set to come down. Copper is predominantly used in heavy machineries. Has resistance at $ 3.7400. Range bound with downwards bias due to slowdown in industrial sectors across the world.

Technical: Copper is among the most important industrial metals. It is used in electrical power cables, data cables, electrical equipment, automobile radiators, cooling and refrigeration tubing, heat exchangers, artillery shells casings, small arms ammunitions. The growth in copper consumption will be driven by high growth in the Industrial Equipments Manufacturing and Automobile sectors.

Chile and U.S. are highest producers while China accounts for highest world copper demand.

CRUDE

Updates: Crude is set to go down due to economic slow down. There is stiff resistance at $ 143.50, thus movement of crude will be range bound with downwards bias.

Technical: Crude oil is the term for unprocessed petroleum oil. It is a fossil fuel getting scarce day by day. Crude oil is such a useful starting point for so many different substances because they contain Hydrocarbons which contain a lot of energy. Many of the things derived from crude oil like gasoline, diesel fuel, paraffin wax and so on take advantage of this energy.

U.A.E., Russia, US, Canada are highest producers while China and U.S. are large consumers, even India's import bill surges because of crude import.

Commodities prices are set for a range bound move with an upwards bias.