Gold futures ended higher on Tuesday as disappointing US economic data reinforced speculation in the market that the Federal Reserve will not raise interest rates at its September 20-21 policy meeting. The Institute for Supply Management reported that its non manufacturing index fell to 51.4 last month from 55.5 in July - the slowest pace of growth since 2010. Yellow metal prices further strengthened as the dollar weakened against a basket of major currencies.
Crude oil futures moved modestly higher on Tuesday on expectations of a supply cut from Saudi Arabia and Russia. The world's two biggest producers agreed to act if prices fall much further from current sub-$50 levels. However, Saudi Energy Minister Khalid al-Falih said there was no need to freeze output for now. Also, the dollar was lower, underpinning demand for oil. There was some concern on weak Services data as well, after the Institute for Supply Management said its nonmanufacturing index fell to 51.4 last month from 55.5 in July- the slowest pace of growth since 2010.
Copper futures ended higher on Tuesday on signs of a modest pick-up in demand. Further, weaker than expected US ISM non-manufacturing PMI data took the shine out of the US dollar, supporting the prices of dollar-denominated commodities. Though, inventories in London Metal Exchange warehouses jumped 6,450 tonnes to 334,975 tonnes, the highest in almost a year, keeping the market under pressure.
Soyabean futures traded lower on NCDEX as speculators trimmed their positions due to lower export demand for soymeal. Further, expectation of higher supplies in the coming harvesting months, too added pressure on soyabean prices.
Turmeric futures edged higher on NCDEX on expectation of lower arrivals from the producing belts. Further, good upcountry demand in coming weeks at the spot market also added support to turmeric prices’ uptrend.
Gold
Crude oil futures moved modestly higher on Tuesday on expectations of a supply cut from Saudi Arabia and Russia. The world's two biggest producers agreed to act if prices fall much further from current sub-$50 levels. However, Saudi Energy Minister Khalid al-Falih said there was no need to freeze output for now. Also, the dollar was lower, underpinning demand for oil. There was some concern on weak Services data as well, after the Institute for Supply Management said its nonmanufacturing index fell to 51.4 last month from 55.5 in July- the slowest pace of growth since 2010.
Copper futures ended higher on Tuesday on signs of a modest pick-up in demand. Further, weaker than expected US ISM non-manufacturing PMI data took the shine out of the US dollar, supporting the prices of dollar-denominated commodities. Though, inventories in London Metal Exchange warehouses jumped 6,450 tonnes to 334,975 tonnes, the highest in almost a year, keeping the market under pressure.
Soyabean futures traded lower on NCDEX as speculators trimmed their positions due to lower export demand for soymeal. Further, expectation of higher supplies in the coming harvesting months, too added pressure on soyabean prices.
Turmeric futures edged higher on NCDEX on expectation of lower arrivals from the producing belts. Further, good upcountry demand in coming weeks at the spot market also added support to turmeric prices’ uptrend.
Technical Levels
Gold
Yesterday we recommended buying in Gold around 31050---31020. It flared and made a high of 31466. Too clearly indicated that above 31200... it could test 31450---31600.
Now what to expect???
Support at 31150---30900 and Resistance at 31600
Looks positive and could test its resistance level of 31600. Further upside rally will see only close above 31600 mark. Break and close above 31600 will take to 31900---32050 and then to 32400+ mark in days to come else it could test its support level of 31150---30900 again.
Trade with levels only
Silver
Too indicated to buy above 46525. Too flared and made a high of 47694. Too indicated that above 46800 will see more upside rally in it
Too indicated to buy above 46525. Too flared and made a high of 47694. Too indicated that above 46800 will see more upside rally in it
Now what to expect???
Support at 47000---46300 and resistance at 48000
Looks positive and could test its resistance level of 47700---48000. Three consecutive closes + weekly close above 48000 will see sharp upside move in it else it could test its support level of 47000---46300 again
Further downside panic will see only close below 46300 mark
Trade with levels only
Crude Oil
Support at 2900 and Resistance at 3050---3200
Close above 3020 will take it to 3050—3080 and then to 3130---3200 mark but chances are unlikely to test its resistance level of 3200 mark in near terms and could test its support level of 2900.
Weekly close below 2900 will take to 2600---2450 mark in days to come.
Positional traders can try to sell Crude oil on rise around 3050---3080 with stop loss above 3200 on closing basis for the initial downside target of 2900
Support at 2900 and Resistance at 3050---3200
Close above 3020 will take it to 3050—3080 and then to 3130---3200 mark but chances are unlikely to test its resistance level of 3200 mark in near terms and could test its support level of 2900.
Weekly close below 2900 will take to 2600---2450 mark in days to come.
Positional traders can try to sell Crude oil on rise around 3050---3080 with stop loss above 3200 on closing basis for the initial downside target of 2900
Copper
Support at 312 and Resistance at 316
Close and sustain below 312 will take to 309---306---303 and then to 298 mark in days to come else it could test its resistance level of 316.
Above 316 we can see upside rally till 319---321 and then to 327 mark.
Trade with levels only
Support at 312 and Resistance at 316
Close and sustain below 312 will take to 309---306---303 and then to 298 mark in days to come else it could test its resistance level of 316.
Above 316 we can see upside rally till 319---321 and then to 327 mark.
Trade with levels only
Soyabean
Close below 3240 will take to 3180---3150 and then to 3080 mark in days to come
Hurdle at 3300
Close below 3240 will take to 3180---3150 and then to 3080 mark in days to come
Hurdle at 3300
Soyaref
Support at 639---633 and Resistance at 660
Either side break or close with volume will decide further. Till then traders can trade in a range with strict stop loss and wait for confirmation
Economics Data
CHF Foreign Currency Reserves – 12:30 P.M
Halifax HPI m/m – 01:00 PM
Manufacturing Production m/m - 02:00 P.M
BOC Rate Statement – 07:30 P.M
Overnight Rate – 07:30 P.M
FOMC Member George Speaks – 07:30 P.M
JOLTS Job Openings – 07:30 P.M
