Update on Bullion, Base Metal and Energy Levels 16th January 2018
Crude oil prices hovered near a three-year high of $64.00 a barrel on signs that production cuts by OPEC and Russia are tightening supplies. OPEC and non-OPEC producers remain committed to production cuts at the same time world oil demand continues to increase. As we go through 2018, the market is also going to continue to look at geopolitical supply disruptions that could occur in Libya, Nigeria and Venezuela. Trading volume remained thin as there was no floor trading on the Nymex because of the Martin Luther King Day holiday in the US.
Base metals prices on the global and domestic counter were mostly lower due to rising a lot of inventory in North China. This has been exacerbated by the ample supply due to the high production rates at smelters, which has put downward pressure on prices. Factories have not lowered their operating rates as is the expectation around this time of year as Chinese New Year is in mid-February causing prices to have fallen. The influence on downstream producers is okay but environmental inspections have affected smelting work a lot.
Technical Level
Gold
Support at 29600 and Hurdle at 29850
Break and sustain above 29850 will take it to 30000—30150++ mark in days to come else could touch support level of 29600 mark.
Fresh selling can be initiated only below 29600.
Trade with levels only.
Silver
Support at 38500 and Resistance at 39700
Overall trend looking positive. Buy and accumulate more on decline for the upside level of 39700.
Above 39700 rally remain continue till 40050—40250++ mark.
Fresh selling can be initiated below 38500 mark.
Trade with levels only.
Crude
Support at 4065 and Resistance at 4130
Break and sustain above 4130 will take it to 4180—4200++ mark in days to come else could touch its support level of 4080 mark.
Fresh selling can be initiated below 4065.
Trade with levels.
Natural Gas
Support at 195.50 and Resistance at 203
Break and sustain below 195.50 will take it to 190—188 mark else could touch its resistance level of 203.
Fresh buying can be initiated only above 203.
Trade with levels only
Copper
Support at 452.00 and resistance at 460.00
Break and sustain below 452.00 will take it to 445--443 mark else could touch its resistance level of 460.00
Fresh buying can be initiated above 460.00
Trade with levels only.
Economic Data
07:00 P.M Empire State Manufacturing Index: Previous 18.00, Expected 18.50%, Actual??
Increase in Empire State Manufacturing Index– positive impact on dollar Index and base metal or vice versa.
More will update soon!!!
