Gold futures ended lower on Wednesday as dollar strengthened against a basket of major currencies on increasing bets that the Federal Reserve will raise US interest rates in December. Meanwhile, market players will be paying attention to closely watched reports on retail sales and producer prices on Friday.
Crude oil futures pulling back from one-year highs, on concern over whether OPEC and Russia will truly curb production as agreed upon last week. Also there was report from the International Energy Agency (IEA) that OPEC boosted its output by 160,000 barrels a day to a record 33.64 million barrels a day in September. IEA also said that it is unclear how rapidly global oil supply could fall in line with demand even if Russia and the Organization of the Petroleum Exporting Countries agreed on a steep enough cut.
Crude oil futures showed a volatile trade and ended lower on Wednesday, ahead of US inventories data that may show oil stockpiles have further dwindled. Prices were also under pressure with OPEC report that its oil production rose in September to the highest in at least eight years and raised its forecast for 2017 non-OPEC supply growth, pointing to a larger surplus next year despite the group's deal to cut output. The producer cartel reportedly pumped 33.39 million barrels per day (bpd) last month.
Technical Level
Gold
Support at 29550---29300 and Resistance at 30000---30150
Close above 29850 will take it to 30000---30150 else could test its support level of 29550---29300 again.
Further downside panic will see below 29300
Trade with levels only.
Silver
Support at 41600 and Resistance at 42600
Above 42600 it could test 43200---43500 else it could test its support level of 41600 again.
Close below 41600 will take to 41200---40800 and then to 40200 mark.
Trade safely with levels only.
Crude oil
Support at 3320 and Resistance at 3370
Above 3370... It could test 3400---3420 and then to 3450 else it could test its support level of 3320 again.
Close below 3320 will take to 3270---3230 and then to 3180 mark
Trade with levels only
Copper
Support at 319 and Resistance at 326
Looks weak and could test its support of 319. Two consecutive closes below 319 will take to 313---310+ mark in days to come else it could test its resistance level of 326 again
Further upside rally will see only close above 326
Trade with levels only
Nickel
Support at 680---650 and resistance at 720.
Either side break or close with volume will decide further.
Till then trade with levels only.
Natural Gas
Support at 208---205 and resistance at 220.
Three consecutive closes + weekly close above 220 will see sharp upside move in it else it could test its support level of 208---205 again.
Trade safely with levels only
Major Economic Data Updates
06:00 P.M Unemployment Claim: Previous 249K, Forecast 252K, Actual –??
Impact – Increase in Unemployment Claim – will have positive impact bullions and negative impact on base metals and vice – versa.
08:00 P.M Natural Gas Storage: Previous 80B, Forecast 84B, Actual –??
Impact – Increase Natural Gas Storage – will have negative impact on natural gas prices vice versa.
08:30 P.M Crude Oil Inventories: Previous -3.0M, Forecast 0.4M, Actual –??
Impact – Increase Crude Oil Inventories – will have negative impact on crude oil prices vice versa.
