Gold futures ended marginally lower on Wednesday as the dollar climbed to a 14-year high against a basket of currencies followed by a surge in Treasury yields after Donald Trump's election to the US presidency. Further, mounting expectations that the Federal Reserve will hike interest rates next month, too added pressure on yellow metal prices.
Crude oil futures turned lower on Wednesday after surging in the previous one, after data showed that crude supplies rose the third straight week. The US Energy Information Administration (EIA) said in its weekly report that crude oil inventories rose by 5.3 million barrels in the week ended November 11. The report also showed that gasoline inventories increased by 0.7 million barrels, while for distillate inventories including diesel, the EIA reported a gain of 0.3 million barrels. Also, there was some concern with report that OPEC pumped 33.64 million barrels of crude per day in October. The figures added to skepticism over the implementation of a planned deal by OPEC to limit production.
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Copper futures declined on MCX as participants indulged in reducing positions, tracking a weak trend as most industrial metals fell globally as speculators in China took their foot off the pedal and the stronger dollar deterred investors from buying commodities. Besides, subdued demand from consuming industries in the spot market also weighed on prices.
Technical Level
Gold
Support at 29250---28900 and resistance at 29700---30000
Trading in range either side breakout with volumes will decide further.
Trade with levels only.
Silver
Support at 40500 and resistance at 41700---42300
Forming Pennant pattern in hourly chart ... break and sustain below 41000 will see sharp downside panic till 40500. Further downside panic will see if close below 40500 mark.
Else could test its resistance level of 41700—42300.
Crude oil
Support at 3030---2970 and resistance at 3130.
Further upside rally will see only close above 3130 mark else it could test it's support level of 3030---2970 again.
Further downside panic will see only close below 2970 mark
Trade with levels only
Copper
Support at 360 and resistance at 385
Close below 360 will take to 350—345 mark else could test its resistance level of 385 again
Further upside rally will be above 385.
Trade with levels only
Major Economic Data Updates
07:00 P.M Building Permits: Previous 1.23M Forecast 1.19M, Actual –??
Impact – Increase in Building Permits – will have negative impact bullion and positive impact on base metals and dollar index and vice – versa.
07:00 P.M CPI: Previous 0.3% Forecast 0.4% Actual –??
Impact – Increase in CPI – will have negative impact bullion and positive impact on base metals and dollar index vice – versa.
07:00 P.M Core CPI: Previous 0.3% Forecast 0.4% Actual –??
Impact – Increase in Core CPI – will have negative impact bullion and positive impact on base metals and dollar index vice – versa.
07:00 P.M Philly Fed Manufacturing Index: Previous 12.8 Forecast 5.2 Actual –??
Impact – Increase in Manufacturing Index – will have negative impact on bullion and positive impact on base metals and dollar index or vice – versa.
07:00 P.M Unemployment Claim: Previous 254K Forecast 257K, Actual –??
Impact – Increase in Unemployment Claims – will have positive impact on bullion and negative impact on base metals and dollar index or vice – versa.
07:00 P.M Housing Starts: Previous 1.05M Forecast 1.16M, Actual –??
Impact – Increase in Housing Starts – will have negative impact bullion and positive impact on base metals and dollar index vice – versa.
7.20 P.M FOMC Member Dudley Speaks
8.30 P.M Fed Chair Yellen Testifies
09:00 P.M Natural Gas Storage: Previous 54B, Forecast 34B, Actual –??
Impact – Increase Natural Gas Storage – will have negative impact on natural gas prices or vice versa.
More will update soon!!
