Gold futures edged higher on Monday on short covering after a volatile session on Friday as concerns about Deutsche Bank's health eased. In the coming week, the US nonfarm payrolls report on Friday is seen by many as the clearest sign on the health of the labour market, amid ongoing speculation over whether US interest rates will rise this year.
Gold demand of India may fall to around 750-800 tons in 2016, as against 860 tons last year, according to World Gold Council. The fall is attributed to sharp rise in prices and strike of jewellers following new regulations.
Oil prices fell away from $50 per barrel on Monday despite an agreement last week by exporters to cut output, with traders doubting the step was enough to rein in production that has exceeded consumption for the better part of three years. The dips follow fresh production highs from the Organization of the Petroleum Exporting Countries (OPEC) as rival members like Saudi Arabia, Iran and Iraq are reluctant to give away market share.
Copper futures traded modestly lower on Monday, despite improving Chinese economic data brightening the outlook for demand from the world's top consumer. Reports out on Saturday showed that the official Chinese purchasing managers’ manufacturing index held at the highest level in almost two years for a second month.
Technical Level
Gold
Support at 30900 and Resistance at 31150
Close below 30900 will take to 30750---30550. More and more downside panic will see only below 30550 else could test its resistance level of 31150.
Fresh buying can initiate only close above 31150.
Trade with levels only
Silver
Support at 45000 and Resistance at 46000----46900
Close below 45000 will take to 44200---43500 .Further downside panic only below 43500 else it could test its resistance level of 46000---46500---46900 again
Trade with levels only
Crude oil
Support at 3190 and Resistance at 3240
Close above 3240 will take to 3280---3320 and then to 3380 mark else it could test its support level of 3190 again
Further downside panic will see only close below 3190
Trade with levels only
Copper
Support at 324 and Resistance at 329
Below 324 will take to 318---315. Further downside panic will see only close below 315 mark else it could test its resistance level of 329 again.
Further upside rally will see above 329.
Trade with levels only
Major Economic Data Updates
07:30 P.M ISM Manufacturing PMI: Previous 49.4, Forecast 50.4, Actual –??
Impact – Increase in Manufacturing PMI – will have positive impact base metals and negative impact on Bullion and vice – versa.
