EPIC COMMODITY UPDATE 19 AUGUST 2013 :ALUMINIUM

Aluminium settled up 0.96% at 120.65 as support seen after the update that LME aluminum inventories shrank by 5,800 mt to 5,438,675 mt also improving economy in China and positive economic data from Europe and the US increased long momentum in the market. Also US housing starts and building permits in July missed forecasts, indicating rising mortgage rates may be hampering US housing market recovery. The University of Michigan Consumer Sentiment in August fell from a 6-year high hit in July. 10-year yields of US government bonds hit a new 2-year high due to renewed selloff. The Dow Jones Index fell by 0.2% on the day and 2.23% on the week, the largest weekly decline in 14 months.

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Gold traders have closely been looking out for US data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases. An exit from the stimulus would deal a heavy blow to gold, which has thrived on demand from investors who buy gold to hedge against the inflationary risks of loose monetary policies. Support seen as SPDR Gold Trust, said its holdings rose 0.26 percent to 915.32 tonnes on Friday. Technically market is getting support at 30691 and below same could see a test of 30542 level, And resistance is now likely to be seen at 30979, a move above could see prices testing 31118.

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