Gold futures ended higher on Tuesday as disappointing US inflation data was seen easing pressure on the Federal Reserve to tighten monetary policy. The US Commerce Department reported that consumer prices inched up 0.3% in September, matching expectations and up from 0.2% in the preceding month. Year-over-year, consumer prices increased 1.5% last month, after having risen 1.1% in August. That was its highest reading since October 2014.
Meanwhile, CPI, excluding the volatile food and energy components, rose 0.1%, missing forecasts for 0.2% and slowing from 0.3% a month earlier. In the 12 months through September, core CPI advanced 2.2%. Yellow metal prices improved further as strength in the British pound helped the US dollar ease back from recent multi month highs.
Crude oil futures bounced back on Tuesday and Nymex crude inched back above $50 a barrel amid headlines from a key oil and gas conference attended by OEPC's secretary general Mohammed Barkindo, who expressed confidence that Russia and certain OPEC members will curb production in order to stabilize oil markets. A drop in the U.S. dollar away from seven-month highs also supported crude, as a lower greenback makes fuel purchases cheaper for countries using other currencies.
Copper futures ended marginally lower on Tuesday after disappointing US economic figures and mixed messages from Federal Reserve officials on the course of interest rates. Copper prices weakened further as investors focused on the multi-month high dollar and upcoming Chinese data.
Technical Level
Gold
Support at 29580 and Resistance at 29880
Above 29880 it can touch 30200---30300 and then to 30500
Fresh selling below 29580
Trade with levels only.
Silver
Support at 42000 and Resistance at 42500
Above 42500 it could test 43200---43500 else it could test its support level of
42000 again.
Close below 42000 will take to 41700---41550
Trade safely with levels only.
Crude oil
Support at 3320 and Resistance at 3400
Close above 3409 will take to 3480---3550
Fresh sell only close below 3320
Trade with levels only
Copper
Clearly indicated looks weak below 313... It can touch 306—303 and then to 298 mark in days to come.
Hurdle intact at 316
Trade with levels only
Major Economic Data Updates
06:00 P.M Building Permits: Previous 1.14M Forecast 1.17M, Actual –??
Impact – Increase in Building Permits – will have negative impact bullion and positive impact on base metals and dollar index and vice – versa.
06:00 P.M Housing Starts: Previous 1.14M Forecast 1.18M, Actual –??
Impact – Increase in Core CPI – will have negative impact bullion and positive impact on base metals and dollar index vice – versa.
08:30 P.M Crude Oil Inventories: Previous 4.9M, Forecast 2.2M, Actual –??
Impact – Increase Crude Oil Inventories – will have negative impact on crude oil prices vice versa.
