Weekly Bullion Report 8 September 2015

Fundamentals

GOLD TICKS DOWN AS MIXED JOBS REPORT YIELDS FEW CLUES ON SEPT RATE HIKE

Gold fell mildly last week amid a relatively flat dollar, as a mixed U.S. jobs report for the month of August provided few signals on the likelihood of a September rate hike by the Federal Reserve. The data did little to alter expectations for a
rate hike at the Federal Reserve's next meeting due to take place September 16-17. Gold for December delivery on the COMEX division of the New York Mercantile Exchange dropped $3.10, or 0.28%, to end Friday's session at $1,121.40 a troy ounce after falling to an intra day low of $1,115.70, the weakest level since August 18. U.S. markets will be closed on Monday for the Labor Day holiday. For the week, prices of the precious metal dropped $10.50, or 1.1%, the second straight weekly loss.

COPPER FUTURES RISE TO 2-WEEK HIGH AS SENTIMENT REBOUNDS

Copper futures extended gains from the prior session to hit a Two- week high last week, as a sharp rebound on Wall Street overnight helped soothe investors' tattered nerves but again fell down on Friday. Copper prices have been under heavy selling pressure in recent weeks as fears of a China-led global economic slowdown spooked traders and rattled sentiment.

INVENTORY
Copper for December delivery sank 7.2 cents, or 3.04%, on Friday to settle at $2.312 a pound as fears of a China-led global economic slowdown spooked traders and rattled sentiment. For the week, copper prices lost 1.7 cents, or 1.11%, as investors continued to fret
over the health of China's economy.


CRUDE FALLS MILDLY, AS U.S. OIL RIGS POST FIRST DECLINE IN SEVEN WEEKS

Crude futures inched down last week after hitting 5 weeks high amid a relatively flat dollar, as U.S. oil rigs fell for the first time in six weeks, marking its largest weekly decline since the start of the summer. Crude oil prices have been under heavy selling pressure in recent months, as ongoing concerns over a glut in world markets drove down prices. Despite Friday's losses, New York-traded oil futures rose $1.05, or 1.84%, on the week, amid indications U.S. oil drillers are cutting back on production following a collapse in prices over the summer

INVENTORY
Crude oil futures added to losses on Wednesday, after data showed that oil supplies in the U.S. rose more than expected last week, underlining concerns over weak demand. Crude oil inventories rose by 4.7 million barrels in the week ended August 28.

Market overview

Gold fell mildly last week amid a relatively flat dollar, as a mixed U.S. jobs report for the month of August provided few signals on the likelihood of a September rate hike by the Federal Reserve. 

Strategy 

For the next week in Gold, traders can use sell on higher levels strategy. If COMEX Gold breaks the level of $1109.00 an ounce on downside, then it can test the levels of $1089.00 - $1071.00 an ounce. Similarly if MCX Gold October futures breaks the level of 26100 then it can test the levels of 25800-25550 on the downside till the end of the week. One can trade by keeping SL of 26300 in the same.