Gold futures ended lower on Wednesday as a better-than-expected reading on the US services sector helped dull the metal’s investment appeal. The Institute of Supply Management reported that its non-manufacturing purchasing manager's index rose to 57.1 last month from 51.4 in August. Analysts had expected the index to increase to 53.0. Meanwhile, traders turned their attention to US payrolls data for September, due Friday.
Crude oil futures surged on Wednesday, touching a fresh four-month high after data showed that crude supplies in the US fell for the fifth week in a row. The US Energy Information Administration (EIA) said in its weekly report that crude oil inventories fell by 2.976 million barrels in the week ended September 30. The report also showed that gasoline inventories increased by 222,000 barrels, while the distillate inventories including diesel, declined by 2.359 million barrel.
Copper futures ended modestly lower on Wednesday as dollar strengthened against basket of major currencies following upbeat US services data. Reports showed that the Institute for Supply Management’s services index jumped to 57.1 last month, its highest since October last year, adding to evidence that the world’s biggest economy is strengthening and raising expectations the Federal Reserve will soon raise rates from ultralow levels. Further, trading in metals has been muted by the absence of Chinese traders this week due to the Golden Week holiday, too adding pressure on copper prices.
Soybean futures traded marginally higher on NCDEX on concerns that wet weather condition during second part of September may have affected early harvest of crops. However, cut in edible oil imports taxes and lower export demand for soymeal, restricted some gains.
Technical Level
Gold
Support at 29750 and Resistance at 30000---30150
Two consecutive + weekly close below 29750 will take it to 29600—29450 and then to 29200 else could test its resistance level of 30000 – 30150 again.
Any sharp rise will be selling opportunity in it but trade with levels only.
Silver
Support at 42000 and Resistance at 42900--43300
Looks weak on charts. Break and sustain below 42300 it could test 42000 and then to 41300---40800 mark else could test its resistance level of 42900---43300 mark again.
Trade with levels only
Crude oil
Support at 3240—3190 and Resistance at 3330
Close above 3330 will take to 3380—3450+ and then to 3550++ mark
Any sharp fall will be buying opportunity in it.
Trade with levels only
Copper
Support at 321 and Resistance at 324.50
Below 321 will take to 318---316--313. Further downside panic will see only close below 316 mark else it could test its resistance level of 324.50 again.
Trade with levels only
Soyabean
Support at 3180---3150 and resistance at 3280---3350.
Trade in a range with levels only
Major Economic Data Updates
06:00 P.M – Unemployment Claims – Previous 254k Forecast 255K Actual –??
Impact - Increase in Unemployment Claims – will have positive impact base metals and negative impact on Bullion and vice – versa.
06:00 CAD Building Permits m/m: Previous 0.8%, Forecast 1.1%, Actual –??
Impact – Increase in Building Permits – will have positive impact base metals and negative impact on Bullion and vice – versa.
08:00 P.M Natural Gas Storage: Previous 49B, Forecast 67B, Actual –??
Impact – Increase in Natural Gas Storage – will have negative impact on Natural Gas prices vice versa
