Commenting on the gold, copper,and crude outlook,

Gold:

Gold futures fell sharply and broke four month lows as investors off-loaded the metal lost its` safe haven appeal on account of positive U.S. economic indicators last week. The U.S. third quarter Gross Domestic Product (GDP) recorded 3.1% which upbeat the preliminary report, current account deficit was narrowed for the third quarter and home builder's confidence climbed to the highest level in six years. As exchange rate plays a major role to arrive commodity price in India's bourses, tracking USDINR fluctuations is important. Rupee traded volatile against the dollar but slightly fell as the Reserve Bank of India (RBI) left interest rates (Repo/reverse repo) unchanged and Cash Reserve Ratio (CRR), which is the amount of funds that the banks have to keep with the RBI, also remains untouched as India's central bank is hawkish about rising inflation. Holdings in the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, declined to 1350.52 tons as on Dec. 20, 2012, down 0.07% compared with 1351.42 tons on Dec. 14, 2012.

MCX February Gold futures are expected to trade lower on unwinding long positions before Christmas and books closing in U.S. Due to unavoidable US fiscal cliff on spending cuts and raising tax issues, markets hold under pressure. Strength in the DX is also expected to exert downside pressure on the gold prices. MCX February gold shall find a support at 30,350/30,150 levels and resistance 30,900/31,100 levels. Spot Gold has support at 1,625/1,610 and resistance at 1,665/1,675 levels.

Copper:

MCX February Copper traded lower in the last week on the back of higher inventories at LME ware house which jumped to the highest in four years. Further, worsening New York region`s manufacturing contracted for the fifth straight month and inflows in U.S. financial assets rose less than expectation, which also added negative sentiments.

MCX February Copper is expected to trade slightly lower on account of uncertainty in the global equity market and unresolved US fiscal cliff issue. Further, market participants are unwinding their positions ahead of Christmas and New Year holiday. MCX February Copper shall find a support at 428/422 levels and resistance 446/451 levels.

Crude:

MCX January crude oil futures traded higher in the last week on the back of Middle East tensions, which may disrupt oil exports as Iran`s foreign minister said that the nation`s deadlock with major powers over its nuclear program needs to be resolved. Lower inventories of US crude oil also provided support to the prices. As per Energy Information Administration (EIA)`s weekly inventories, US commercial crude oil inventories decreased by 10 lakh barrels and distillate inventories also dropped 11 lakh barrels last week, which indicates oil demand is picking up in U.S. Further, Rise in US GDP in third quarter and there was news that China is setting a target 7.5% growth rate for second year while inflation target is lowest level since April 2006 which is positive for crude oil prices. Additionally, Organization of Petroleum Exporting Countries (OPEC) will cut crude exports by 2.6% next month, which supplies about 40 percent of the world`s oil added bullish market sentiments.

MCX December crude oil is expected to trade higher on account of lower inventories. Higher US GDP in third quarter coupled with an announcement of cut crude exports by 2.6% from OPEC is also supportive for crude oil prices. MCX January crude oil shall find a support at 4,850/4,790 levels and resistance 5,080/5,125 levels.