Gold futures edged lower on MCX as speculators trimmed their positions, tracking a weak trend overseas on concern that the Federal Reserve may raise interest rates before the end of the year also Federal Reserve officials made some positive comments about the interest rates, boosting the dollar, while focus turned out to be at US job market and the pace of interest rate hike will depend on how well the economy is doing.
Crude oil futures continued the decline on Tuesday on growing glut worries amid forecasts for higher U.S. crude stockpiles and Iran's remark that it was on target to reach peak production. Also, the dollar rallied against major currencies on hopes of a rate hike. Meanwhile, an Iranian government official said at an oil industry conference in Norway that Tehran's production was expected to hit 4 million barrels per day by year end.
Copper futures ended marginally lower on Tuesday on firmer US currency after the hawkish comments last week from both Fed Chair Janet Yellen and Vice Chair Stanley Fischer underlined prospects for an interest-rate increase in the coming months, and the market focused on US non-farm payrolls data later this week for clues to the timing of US interest rate rises. Copper prices weakened further as inventories in LME-approved warehouses rose 11,650 tonnes, bringing with much of the build occurring in South Korea and Singapore.
On Agri Side, Industry expects soyabean prices to plunge as the Crop Health Survey of Soyabean Processors Association of India (SOPA) has indicated a big soyabean crop as farmers harvest the crop from September end. To avoid losses to farmers, the industry has demanded increase in import duty of oil to reduce cheaper imports. “We are heading towards a big crop if there is no untoward weather development. We will have to export about two to three million tonne soya meal,” said Davish Jain, president, SOPA. The NCDEX spot soyabean prices have declined by about 9% from .₹ 3,800/quintal on August 1 to ₹3,464/quintal on August 30. The export of oilmeals had declined by 61% in the April to June quarter due to disparity in exporting oilmeals in international markets. At the same time, the overall import of oil between November 2015 to July 2016 was up by 5% according to the data of the Solvent Extractors Association (Source: ET)
Jeera futures traded lower on NCDEX due to subdued demand at the spot market. Though, expectation of fall in jeera output this year, compared to last year due to hot weather and lower acreage in the producing belts of Rajasthan, capped some losses.
Technical Levels
Gold
Yesterday we recommended selling in Gold below 30850. We booked part profit around 30770---30750
Now what to expect???
Below 30800 it could test 30700---30600. Three consecutive closes + weekly close below 30600 will see sharp downside move till 30200---30000 and then to 29500 mark in days to come else it could test its resistance level of 31000---31150 again
Further upside rally will see only close above 31150 mark
Trade with levels only
Silver
Support at 43500 and resistance at 44700
Close below 43500 will take it to 42700---42300 else could test its resistance level of 44700.
Fresh buying above 44700.
From tomorrow onward there is staggered delivery option in Silver. So we have to square up this position today only.
Trade safely with less quantity
Crude Oil
Resistance at 3150---3220 and Support at 3090
Close below 3090 will take it to 3050---3030 and then to 3000 mark in days to come else could test its resistance level of 3150---3220 again
Further upside rally will see only close below 3220 mark
Trade with levels only
Copper
Support at 306 and Resistance at 310---314.50
Looks weak below 306 and we can see downside panic 303—300--298 marks in days to come else could test its resistance level of 310---314.50 again.
Trade with levels only
Nickel
Support at 650 and resistance at 670.
Either side break or close with volume will decide further. So trade in a range with levels only
Trade with levels only
Soyabean
Support at 3250 and Resistance at 3320
Close below 3250 will take to 3180---3130 and then to 3050 mark in days to come else it could test its resistance level of 3320 again
Further upside rally will see only close above 3320
Trade with levels only
Economics Data
ADP Non-Farm Employment Change 05:45
GDP m/m 06:00 P.M
Chicago PMI 07:15 P.M
Pending Home Sales m/m 07:30
Crude Oil Inventories 08:00 PM
