Updates on Bullion, Base Metals and Energy Levels 8th February 18
Extending their recent slump, Crude oil futures declined sharply to one month low on Wednesday after data showed U.S. oil inventories dropped for a second week in a row. The U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 1.9 million barrels from the previous week. Total motor gasoline inventories increased by 3.4 million barrels last week, and are in the middle of the average range. A stronger dollar and demand concerns also weighed on oil prices. Rising interest rates may cool off the economy, resulting in diminished demand for energy products.
Crude oil futures edged higher on MCX, as speculators enlarged positions, despite lingering concerns over rising production in the US sent prices to their lowest levels in around five weeks. Meanwhile, US commercial crude stocks rose by 1.9 million barrels in the week to February 2, to 420.25 million barrels, that added to fears that rising US output would dampen OPEC’s efforts to rid the market of excess supplies.
Copper futures edged higher on MCX, as speculators covered-up their short positions after previous session's fall, even as the metal weakened in overseas market. However, Comex copper dipped to an eight-week low rate as the US dollar strengthened and equity and bond market volatility spilled over onto commodity markets.
Technical Level
Gold
Support at 29800 and Resistance at 30050
Break and sustain below 29800 will take it to 29550---29400 mark else could touch its resistance level of 30050 mark.
Fresh buying can be initiated above 30050
Silver
Support at 37550 and Resistance at 38050
Break and sustain below 37550 will take it to 37150---37000 mark else could touch its resistance level of 38050
Fresh buying can be initiated above 38050
Crude
Support at 3940 and resistance at 4040
Break and sustain below 3940 will take it to 3860--3840 and then to 3800 mark in days to come else could touch its resistance level of 4040.
Fresh buying can be initiated only above 4040
Trade with levels only.
Natural Gas
Support at 173, if unable to breach its support level of 173, then we can expect sharp upside move till 178—180 and then to 185++ mark.
Fresh selling only below 173
Copper
Support at 435 and Resistance at 445
Break and sustain below 435 will see sharp downside panic till 425—420 and then to 410 mark, else could touch its resistance level of 445.
Fresh buying only above 445
Economic Data
07:00 P.M Unemployment Claims: Previous 230K, Expected 232K, Actual??
Increase in Unemployment claim – will have negative impact on dollar index and positive impact on bullion or vice versa.
09:00 P.M Natural Gas Storage: Previous -99B, Expected -116B, Actual??
Increase in Natural Gas Storage – will have negative on natural gas prices or vice versa.
More Will Update Soon!!
