Gold futures ended lower on Wednesday as investor appetite for riskier assets such as equities and crude oil recovered slightly, denting demand for bullion, often considered a safe haven. Yellow metal prices declined further ahead of next week's Federal Reserve meeting. The Fed will hold its next monetary policy meeting on November 1-2.
Crude oil futures continued their sluggish trend on Wednesday, slipping to their lowest in three weeks, as Russia and OPEC are dragging their feet over a planned reduction in output that would have helped to stabilize oil prices. It was reported that Russia is now against OPEC production cuts, while Iraq and others say they should be exempt. Traders even overlooked data showing that crude supplies in the US fell unexpectedly last week. The US Energy Information Administration said in its weekly report that crude oil inventories fell by 553,000 barrels in the week ended October 21. The report also showed that gasoline inventories decreased by 1.956 million barrels, while for distillate inventories including diesel, the EIA reported a drop of 3.354 million barrels.
Copper futures ended higher on Wednesday on talks of further fiscal stimulus by the world’s top metal consumer China, which could lift demand for most metals. Copper prices improved further after a report showed sales of new US homes held close to an almost nine-year high.
Technical Level
Gold
Support at 29700 and Resistance at 30000
Two consecutive + weekly close above 30000 will take to 30300---30550+ mark in days to come else it could test its support level of 29700 again.
Selling can be initiated below 29700
Trade with levels only
Silver
Silver has support at 41800 and resistance at 42700.
Two consecutive close + weekly close above 42700 will take to 43300---43800 and then to 44500+ mark
Fresh selling can initiate only close below 41800
Trade with levels only
Crude oil
Support at 3270 and resistance at 3330--3370
Below 3270 will take 3220---3170else it could test its resistance level of 3330---3370 again.
Trade with levels only
Copper
Support at 315 and resistance at 321---324
Looks positive and could test 321---324. Further upside rally will see only close above 324 mark else could test its support level of 315
Trade with levels only
Major Economic Data Updates
06:00 P.M Core Durable Goods Orders m/m: Previous -0.2 Forecast 0.2%, Actual –??
Impact – Increase in Core Durable Goods Orders – will have negative impact bullion and positive impact on base metals and dollar index or vice – versa
06:00 P.M Durable Goods Orders m/m: Previous -0.2 Forecast 0.2%, Actual –??
Impact – Increase in Core Durable Goods Orders – will have negative impact bullion and positive impact on base metals and dollar index or vice – versa.
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06:00 P.M Unemployment Claims: Previous 260k Forecast 261k, Actual –??
Impact – Increase in Unemployment Claims – will have positive impact on bullion and negative impact on base metals and dollar index or vice – versa.
08:00 P.M Natural Gas Storage: Previous 77B, Forecast 71B, Actual –??
Impact – Increase Natural Gas Storage – will have negative impact on natural gas prices or vice versa.
