Gold futures ended lower on Monday as the US dollar strengthened against a basket of major currencies to a fresh near nine-month high in the wake of data showing that the pace of growth among American manufacturers was better than expected in October. Yellow metal prices further declined on growing speculation that the US Federal Reserve would hike interest rates in December.
Crude oil futures turned lower on Monday after the dollar strengthened to its highest in eight months, on speculation the Federal Reserve will soon raise interest rates. Also Iraq said that it will not join OPEC quotas as it looks to make up for years of supply interruptions brought on by war. Iraqi oil minister Jabar Ali al-Luaibi said Baghdad wants to be exempt from any production cut the Organization of the Petroleum Exporting Countries is aiming to achieve. On the other hand Russian Energy Minister Alexander Novak said at a meeting with OPEC Secretary-General Mohammed Barkindo that a short-term cap in oil output would reduce market volatility.
Natural Gas futures broke for a fourth straight trading session on Monday as investors increased bets that because of the warmer-than-expected fall temperatures, the market will have more than enough inventory in the U.S. to meet winter demand for the heating fuel. Last week’s Energy Information Administration report for the week-ending October 14 showed that supplies rose a little more than expected. Prices are likely to continue to feel pressure if this trend continues, which is likely without the cold weather to eat up supply.
Copper futures ended higher on Monday after the world's biggest copper miner cut its 2017 physical copper premium to European buyers, reflecting expectations of ample supply. However, some gains were capped by stronger dollar, which touched another 8-month high in the wake of data showing that the pace of growth among American manufacturers was better than expected in October.
Soybean futures edged lower on NCDEX due to improving harvesting process of soybean on forecast of dry and clear weather in Rajasthan, MP and Maharashtra. Though, some losses were capped on rising demand for new season soybean crop.
Cardamom futures traded higher on MCX as investors widened their positions amid surge in physical demand for cardamom in the domestic spot market. Further, insufficient supplies on restricted physical arrivals from the major cardamom producing regions too fuelled the uptrend.
Technical Level
Gold
Support at 29800 and Resistance at 30000
Close below 29800 will take to 29650---29580 mark else it could test its resistance level of 30000 again.
Fresh buying only above 30000
Trade with levels only
Silver
Silver has support at 41800 and resistance at 42700.
Close above 42700 will take to 43300---43800 and then to 44500 mark else it could test its support level of 41800 again
Further downside panic will see only close below 41800 mark.
Trade with levels only
Crude oil
Yesterday we recommended selling in crude oil around 3390—3400. It crashed and made low of 3332.
Now what to expect??
Support at 3330 and resistance at 3470
Close below 3330 will take to 3280--3250 and then to 3220 mark else it could test its resistance level of 3470 again.
Further inside rally will see only close above 3470 mark.
Trade with levels only
Copper
Today we recommended buying in Copper around 313.60—313.20
If flared and made high of 317.45.
Now what to expect??
Close above 316 will take to 322---325 mark.
An sharp downside panic will be buying opportunity with stop loss below 310 on closing basis.
Aluminum
Support at 109.20 and resistance at 111.20.
Close above 111.20 will take to 112.50---113.20.
Three consecutive closes + weekly close above 113.20 will see sharp upside move in it.
Trade with levels only.
Lead, Zinc and Nickel moved up sharply. Have patience... More levels will update soon.
Natural gas trend will update after expiry.
Major Economic Data Updates
07:30 P.M CB Consumer Confidence
08:05 P.M - BOE Gov Carney Speaks
09:00 P.M ECB President Draghi Speaks
