Gold futures ended lower on Thursday after a relatively upbeat US jobless claims data hinted at a Federal Reserve interest rate hike. The Labor Department released a report showing that the first-time claims for US unemployment benefits unexpectedly edged lower in the week ended September 3rd. The initial jobless claims dipped to 259,000, a decrease of 4,000 from the previous week's unrevised level of 263,000.
Crude oil futures extending the gains surged on Thursday, after data showed that crude supplies in the U.S. fell by the most since April 1985. The U.S. Energy Information Administration (EIA) said in its weekly report that crude oil inventories fell by 14.51 million barrels in the week ended September 2.The gasoline inventories declined by 4.211 million barrels, while the distillate inventories including diesel, increased by 3.382 million barrels. Nymex crude posted the biggest daily percentage gain for US futures since April.
Copper futures ended marginally higher on Thursday due to weaker US dollar after a string of softening economic reports pushed back US rate hike expectations. Besides, inventories in London Metal Exchange - approved warehouses dropped for the first time in three weeks, signalling returning demand after the slower northern summer months. Though, lower copper imports into the world’s top metal consumer China in August kept prices in check.
Soyabean futures traded higher on NCDEX, driven by higher international market prices due to short-covering. However, expectation of higher yield and weak demand for soybean meal in export market, capped some gains.
Cotton futures traded higher on MCX due to improved demand from traders and stockists at the spot market. Further, lower than expected cotton production forecasted by USDA also added support to cotton prices’ uptrend.
Jeera futures traded lower on NCDEX on account of higher supply from the producing belts. Though, some losses were capped on expectation of pickup demand at the spot market ahead of Diwali festival.
Technical Levels
Gold
Gold... unable to breach its resistance level of 31380 and slipped. Just made a low of 31130
Now what to expect???
Break and sustain below 31130 will take to 31080---31030 and then to 30970 mark
30900---30600 act as major support are in Gold while 31400---31550 act as major hurdle area.
We will expect range bound trading session in Gold as all eye on upcoming FED meet decision.
So traders can trade in a range with strict stop loss and trade with levels only
Silver
We recommended selling in Silver mini around 47100. Just made a low of 46456
Now what to expect???
Still looks weak and could test 46200---46000. Further downside panic will see only weekly close below 46000 else it could test its resistance level of 46850 and then to 47300---47700 again
48000 act as major resistance in Silver
Crude oil
Yesterday we recommended buying in Crude oil around 3080---3070. It flared and made a high of 3173. We booked full profit around 3165
Now what to expect???
Support at 3130 and Resistance at 3180---3230
Close below 3130 will take to 3080---3050 and then to 3000 mark else it could test its resistance level of 3180---3230 again
Further upside rally will see only close above 3230
Trade with levels only
Copper
Support at 311 and Resistance at 315
Close below 311 will take to 307---306. Further downside panic will see only close below 306 else it could test its resistance level of 315 again
Further upside rally will see only close above 315 mark. Close above 315 will take to 319---322 and then to 327 mark.
Trade with levels only
Soyabean
Support at 3190 and Resistance at 3250
Weekly close above 3250 will take to 3320---3380 mark else it could test its support level of 3190 again
Close below 3190 will take to 3130---3080 and then to 3000 mark
Trade with levels only
Economics Data
FOMC Member Rosengren Speaks – 05:15 P.M
CAD Employment Change – 06:00 P.M
CAD Unemployment Rate – 06:00 P.M
More will update soon!!
