Gold trading within narrow range as investors looked ahead to
central bank policy reviews in US. The US central bank is widely expected to
hold interest rates unchanged at 0.25 percent to 0.50 percent, and could hint
at a rate hike by the end of the year.
Crude oil futures paring their early losses
inched higher on Tuesday, despite remarks from a top OPEC official who
downplayed the possibility of a deal between major producers to curb output.
Traders were eyeing the fed and Bank of Japan’s monetary policy announcement.
The Federal Reserve is likely to maintain its current ultra-low interest rate
Wednesday, while the Bank of Japan may come up with some surprise. In early
deals the crude prices plunged to the lowest level in nearly six weeks as
market players shifted their focus to weekly data from the U.S. on stockpiles
of crude and refined products. Though, Venezuela said that global supplies
needed to fall by 10% in order to bring production down to consumption levels.
Copper futures ended marginally higher on
Tuesday, brightened by China’s real estate boom and stronger than expected
factory activity over summer, with copper also finding support from earlier
than expected consumer restocking. However, some gains were capped on cautious
trade ahead of key decisions by the Japanese and US central banks. Investors
expect the Fed to leave rates unchanged, and attention will likely turn toward
the potential for a rate rise in December. In Japan, investors are divided on
whether the bank could further loosen monetary policy with a rate cut or a new
round of bond purchasing.
Soybean futures edged down on NCDEX due to
lower demand for crush as export demand for meal is lower this year. However,
some losses were capped by some reports of crops been affected by dry weather
in August followed by recent heavy rainfall in farmlands of Madhya Pradesh and
Maharashtra.
Technical Levels
Gold
From last 4 trading sessions we have seen range bound trading in
Gold as all eye on FOMC meet which is scheduled today at IST 11.30pm. Currently
trading around 30900
Now what to expect???
Support at 30800 and Resistance at 31050
Close below 30800 will take to 30625---30550. Three consecutive closes + weekly
close below 30550 will see free fall in it else it could test its resistance
level of 31050 again
Close above 31050 will take to 31200 and then to 31380---31550
Trade with levels only
Silver
Support at 45850 and Resistance at 46300
Close below 45850 will take to 45400---45050 and then to 44700. Further
downside panic will see only close below 44700 mark else it could test its
resistance level of 46300 again
Close above 46300 will take to 46900---47300+ mark
Trade with levels only
Crude oil
Support at 2950 and Resistance at 3030
Close above 3030 will take to 3080---3120 and then to 3180 mark else it could
test its support level of 2950 again
Further downside panic will see only close below 2950
Trade with levels only
Copper
Support at
321 and Resistance at 325
Close above 325 will take to 329---332. Further upside rally will see only
close above 332 mark else it could test its support level of 321 again
Further downside panic will see only close below 321
Trade with levels only
Economic Data
Impact - If crude oil inventory will be as expected increase in supply will put pressure on crude Oil prices.
11:30 P.M - FOMC Statement , Fed Funds Rate , FOMC Economic Projection
Expectation & Impact - Market has paired their exception that the US Federal Reserve will deliver any interest rate hike in its two- day meeting. But it is less likely that the recent decline in unemployment will raise inflation thereby removing the urgency of hike interest rate. However , there remains risk of surprise rate hike.
