Gold prices edged slightly higher today with the focus on non farm payroll figures from the U.S. with the key indicator in Fed interest rate decision making particularly in the spotlight for chances of tipping a rate hike as early as the month. Overnight, gold prices fell to a new two-month low for the second day in a row on Thursday, as investors looked ahead to data on U.S. non farm payrolls on Friday to see if the economy is strong enough to withstand a rate hike in the coming weeks.
The consensus forecast is that the data will show jobs growth of 180,000 in August, following an increase of 255,000 in the preceding month. A strong non farm payrolls report would reinforce the view that a U.S. rate hike in September may be on the cards, after hawkish signals from senior Fed officials in recent days revived speculation of a near-term rate hike.
Crude oil futures continued the slump and sank to fresh three-week low for the second day in a row on Thursday. Traders were still pondering on the US crude inventories report, focusing attention on a supply glut that has pushed stockpiles to record highs around the world. Investors were also monitoring any developments by major producers planning to meet later this month to discuss a freeze in output and looked ahead to figures on US drilling efforts.
Copper futures were trading higher on MCX as traders enlarged positions, driven by pick- up in demand from consuming industries in the spot market. Besides, a firming trend in overseas markets after upbeat factory data from the world’s top metals consumer China spurred buying, also supported the upside. China’s official manufacturing PMI showed the sector expanding for the first time since May as the index beat expectations that it would stay unchanged 49.9 to rise to 50.4 in August
Technical Levels
Gold
Support at 30600 and Resistance at 30900---31050
Break and sustain below 30600 will take to 30200---30000 mark in days to come else it could test its resistance level of 30900---31050 again
Further upside rally will see only close above 31050 mark
Silver
Support at 44500 and resistance at 45700
Close below 44500 will take it to 43800---43500 and then to 42800 else could test its resistance level of 45700 again
Fresh buying can initiate only weekly close above 45700.
Crude Oil
Support at 2860 and Resistance at 2930
Close below 2860 will take it to 2820---2780 and then to 2700 mark in days to come else could test its resistance level of 2930 again.
Close above 2930 will take to 2980---3000---3030. Further upside rally will see only close above 3030 mark.
Trade with levels only
Copper
Support at 312 and Resistance at 321---327
Three consecutive closes + weekly close below 312 will take to 302---296 and then to 288 mark in days to come else it could test its resistance level of 318---321 and then to 327 mark but chances are unlikely to breach its resistance level of 327 in near terms
So be cautious at upper levels.... Anything seems will update
Nickel
Support at 650 and Resistance at 670---692
Three consecutive closes + weekly close below 650 will take to 610---585 and then to 560 mark in days to come else it could test its resistance level of 670---692 again
Further upside rally will see only above 692 mark
Trade with levels only
Economics Data
Construction PMI 02:00 P.M
Trade Balance 06:00 P.M
Average Hourly Earnings m/m 06:00 P.M
Non-Farm Employment Change 06:00 P.M
Unemployment Rate 06:00 P.M
Trade Balance 06:00 P.M
Factory Orders m/m m/m 07:30 P.M
