Wednesday, February 07, 2018 MAJOR COMMODITIES. News & Development. For Private Circulation Only

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1 Wednesday, February 07, 2018 For Private Circulation Only MAJOR COMMODITIES Commodity Expiry High Low Close Change Commodity Expiry High Low Close ($) Change Gold Feb Gold (Oz) Apr Silver Mar Silver (Oz) Mar Crude Oil Feb Crude Oil Mar Natural Gas Feb Natural Gas Mar Copper Feb Copper 3MF Nickel Feb Nickel 3MF Aluminium Feb Aluminium 3MF Lead Feb Lead 3MF Zinc Feb Zinc 3MF News & Development No major fundamental development.

2 Gold Gold prices fell 1 percent to a 2-1/2-week low on Tuesday, as investors focused on expectations for higher U.S. interest rates, even as U.S. stock markets swung wildly in both directions a day after the Dow and S&P 500 indexes tumbled. Strength in the U.S. dollar index weighed on gold prices earlier, when world stock markets extended their sell-off. The greenback later turned flat. A stronger dollar typically makes commodities priced in the greenback more expensive for buyers using other currencies. Gold saw no safe-haven boost from tumbling equity markets this week because the U.S. economy is still seen as robust and shares are expected to rebound, traders said. Markets had been anticipating up to four U.S. interest rate hikes this year. However, the economy may not be as strong as forecast, Pehowich said, reducing the need for such aggressive action. Higher interest rates make gold a less attractive investment because it pays no interest. Gold Strategy S2 S1 Close R1 R2 Apr S We expect gold prices to trade positive on the back of short covering after drop in prices. Silver Silver dropped 0.9 percent to $16.59 per ounce. Silver Strategy S2 S1 Close R1 R2 Mar S We expect silver prices to trade positive on the back of short covering after drop in prices. Page 2

3 Crude Oil Oil fell for a third day on Tuesday as the U.S. dollar rose to its highest in more than a week in the wake of a sharp sell-off early this week on Wall Street and other stock markets. The crude market remains in positive territory for the year however, even after Wall Street stocks on Monday posted their largest one-day fall since late U.S. crude futures were stronger in post-settlement trading after weekly inventory figures from industry group the American Petroleum Institute showed a 1.1 million barrel decrease in overall crude oil stocks for last week. A preliminary poll by Reuters on Tuesday showed analysts expected weekly data to show U.S. crude inventories last week rose 3.2 million barrels. Oil's inverse relationship to the dollar, whereby a stronger currency makes it more expensive for non-u.s. investors to buy dollardenominated assets, has reasserted itself this week, with the greenback up more than 1 percent since Feb. 1. U.S. stocks eventually rebounded in volatile afternoon trading on Tuesday. Major indexes rose more than 1 percent in a drastic swing after starting the session 2 percent lower from Monday. The difference between the high and low for the Dow on Tuesday was more than 1,100 points. Crude Oil Strategy S2 S1 Close R1 R2 Feb R We expect crude oil prices to trade negative on the back of profit booking after up-move. Natural Gas We expect Natural gas prices to trade negative on the back of warmer than expected weather conditions in the US. Nat Gas Strategy S2 S1 Close R1 R2 Feb R \ Page 3

4 Base Metals Prices of industrial metals fell on Tuesday as global stock markets plunged for a fourth day, prompting investors to cut exposure to riskier assets and strengthening the dollar. Global shares have lost $4 trillion in value from record highs in late January, while the dollar, seen as a safer asset, has risen from three-year lows, making metals more expensive for holders of other currencies. Expectations of strong demand for metals were supported by data showing that German industrial orders rose more than expected in December. U.S. President Donald Trump plans to unveil details of his longawaited plan to generate at least $1.5 trillion in infrastructure improvements next Monday. Zinc was supported by a fall in on-warrant inventories available to the market in LME-registered warehouses to 83,700 after 14,650 tonnes of fresh cancellations. On-warrant stocks are down 58 percent since Oct. 20. Feb Strategy S2 S1 Close R1 R2 Copper S Nickel S Alum Sideways Lead Sideways Zinc Sideways We expect base metal prices likely to trade volatile on the back of largely speculative trading. LME Inventories Copper Lead Zinc Aluminium Nickel Current Stock Change % Change % -0.91% -0.80% -0.24% -0.83% Page 4

5 DATE TIME (IST) COUNTRY ECONOMIC DATA CONSENSUS PREVIOUS IMPACT Wed Feb 7 9:00pm USD Crude Oil Inventories 3.2M 6.8M High For Further Assistance Contact: Ashish Shah Tejas Nikhar Devashish Srivastava AVP ashish.shah@sushilfinance.com Sr. Research Analyst tejas.nikhar@sushilfinance.com Research Analyst devashish.srivastava@sushilfinance.com WE / OUR CLIENTS / OUR RELATIVES MAY HAVE PERSONAL TRADING / INVESTMENT INTEREST IN THE STOCKS MENTIONED HERE IN. STATEMENT OF DISCLAIMER This report includes information from sources believed to be reliable but no independent verification has been made and we do not guarantee its accuracy or completeness. Opinions expressed are subject to change without notice. This report cannot be construed as a request to engage in any transaction involving the purchase or sale of a futures contract. The risk of loss in trading futures contracts can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results. Additional information with respect to any commodities referred to herein will be available on request. Sushil Global Commodities Pvt. Ltd. and its connected companies, and their respective Directors, Officers and employees, may, from time to time, have a long or short position in the commodities mentioned and may sell or buy such commodities. Sushil Global may act upon or make use of information contained herein prior to the publication thereof. This data sheet is for private circulation only. While utmost care has been taken in preparing the above, we claim no responsibility for its accuracy. We shall not be liable for any direct or indirect losses arising from the use thereof and the investors are requested to use the information contained herein at their own risk. Sushil Global Commodities Private Limited Member: NCDEX, FMC Regn.No MCX, FMC Regn.No Genius, 4 th Road, Khar (W), Mumbai Tel.: Fax: commodities@sushilfinance.com Page 5