BULLIONS WEEKLY REPORT 24–28 FEBRUARY 2014

MARKET FUNDAMENTAL NEWS & REPORTS 

GOLD 

Gold closed the week at 1321.30. Gold surged 0.5%. Gold has rallied 10% in 2014
as signs that the U.S. economy wasn’t recovering in line with expectations and
found support as investors shifted to “safe haven” of gold. In economic news, the
National Association of Realtors showed existing home sales in January dropped
more than expected, providing further evidence of weakness in the housing
market. Home buyers were constrained by tight credit, limited inventory, higher
prices and higher mortgage interest rates. Gold is up about 10% in 2014 because
it is valued as a safe haven amid signs the global economy has hit a rough patch.
Also physical buying has been strong especially out of China, as it was reported
that China bought 85 tons of Gold. Despite a hawkish tone from Fed officials
concerning future tapering, this market seems poised to edge higher.

SILVER 

Silver closed the week near its recent highs at 21.7525 after trading as high as
21.978 but remained within a tight range. The U.S. Economic calendar is light next
week and economists said the trend of the wintry weather possibly affecting data
results will likely continue. New home sales data are slated for Wednesday with
Durable Goods expected Thursday and the second estimate of fourth quarter GDP
for a Friday release.

CRUDE OIL 

Crude Oil eased on Friday as traders booked profits and closed at 102.28 off the
weekly high of 103.28. Much like natural gas the demand increase has been
sparked by the cold temperatures across the US. Brent Oil ended the week on a
down note at 109.88. Temperatures are expected to moderate this weekend, but
another bout of Arctic air is forecast to reach the eastern and central U.S. by late
next week and last through the first week of March. Prices will remain supported
by another bout of severe winter weather forecast to move across much of the
United States over the next 10 days. Brent’s premium to U.S. crude narrowed to
as little as $7.09 in the previous session, it’s tightest since Oct. 9, and was near
$7.50 a barrel. U.S. benchmark West Texas Intermediate was heading for its sixth
straight weekly rise as a new pipeline helps drain supplies from WTI’s delivery
point at Cushing, Oklahoma.

NATURAL GAS 

Natural Gas at the day week at 6.128 easing off its record high of 6.378 as the cold 

weather continued to freeze the United States. On Friday traders took advantage 

of the surge in prices after the weekly inventory showed a larger decline than 

forecast. Working natural gas in storage decreased to 1,443 Bcf as of Friday, 

February 14, according to the U.S. Energy Information Administration (EIA) 

Weekly Natural Gas Storage Report (WNGSR). A net storage withdrawal of 250 Bcf 

for the week resulted in storage levels 40% below year-ago levels and 34% below 

the 5-year average. The largest drop in consumption came from the residential 

and commercial sector, which fell week-on-week by 18.9 Bcf/d (29.6%), to 44.9 

Bcf/d. Natural gas consumption in the power sector (power burn) fell by 6.4 Bcf/d 

(27.4%) below week-ago levels, to 16.8 Bcf/d. Industrial consumption decreased 

by 1.0 Bcf/d (4.4%), and natural gas exports to Mexico dipped by 2.9%. 

COPPER 

Copper closed a new recent high of 3.291. Activity in China’s factories shrank in 

February as employment fell at its fastest pace in five years, a private survey 

showed on Thursday. The flash Market-HSBC Purchasing Managers’ Index fell to a 

seven-month low of 48.3 in February from January’s final reading of 49.5. A 

reading below 50 indicates contraction. Muddying the waters, however, Chinese 

customs data on Friday showed imports of refined copper surged around a 

quarter in January from the previous month to their second-highest on record. 

COMMODITY PICK OF THE WEEK: SILVER 

MCX Silver March as seen in the weekly chart above has opened the week at 47, 492 

levels and at during the same time prices made a low of 46,932 levels and high of 

48,090 levels and manage to close near to the same opening levels. For the next week 

we expect silver prices to find support in the range of 46,900 – 46,850 levels. Trading 

consistently below 46,850 levels would lead towards the strong support 46,000 levels 

and then finally towards the major support at 45,200 levels. Resistance is now observed 

in the range of 48,100 – 48,200 levels. Trading consistently above 48,200 levels would 

lead towards the strong resistance at 49,200 levels, and then finally towards the Major 

resistance at 50,000 levels. 

WEEKLY RECOMMENDATION: BUY SILVER MARCH MCX BETWEEN 46750 FOR TARGET 

OF 48000/ 48500 WITH SL OF 46000.

COMMODITY PICK OF THE WEEK: NATURAL GAS

MCX Natural Gas February as seen in the weekly chart above has opened with the open 

at 325.90 and during this period prices rallied sharply higher breaking the resistance of 

360 levels and made a high of 395.50. Finally prices closed sharply higher from the 

previous week closing levels. For the next week we expect Natural Gas prices to find 

support in the range of 360 –355 levels. Trading consistently below 355 levels would 

lead towards the strong support at 325 levels and then finally towards the major 

support at 300 levels. Resistance is now observed in the range of 395 - 400 levels. 

Trading consistently above 400 levels would lead towards the strong resistance at 440 

levels, and then finally towards the Major resistance at 480 levels 

WEEKLY RECOMMENDATION: SELL NATURAL GAS FEBRUARY MCX NEAR 360 TO 365 

FOR TARGET OF 400 / 411 WITH SL OF 340 TO 345.