Gold futures ended lower on Thursday as the dollar and treasury yields pushed higher on strong US economic data, including reports showing a plunge in US jobless claims and a jump to a nine-year high for housing starts and comments by US Federal Reserve Chair Janet Yellen that bolstered the case for hiking interest rates next month.
Crude oil futures turned lower on Thursday as the dollar continued to strengthen after US Fed Chair Janet Yellen’s testimony stating that Federal Reserve is prepared to raise interest rates. While the Saudi Energy Minister Khalid al-Falih said he was optimistic that the Organization of the Petroleum Exporting Countries will finalize plans to cut production, traders remained skeptical of a deal given Iran's insistence on being exempt from any agreement. Iran's increasing output casts doubt on whether an OPEC deal will be able to clear a persistent global oil glut.
Copper futures ended higher on Thursday in volatile trade, on speculation that Donald Trump will boost domestic spending on infrastructure. Further, falling inventories for the metal used in construction and power, too supported copper prices. LME reports on Thursday showed that inventories rose 2,275 tonnes to 257,875 tonnes, but are down 32 percent from a 2016 peak in September. Even though there are some bets that the US Federal Reserve was on track to raise interest rates in December following comments by Chair Janet Yellen.
Technical Level
Gold
Yesterday we recommended STBT in gold….it crashed and made low of 28800
Now what to expect??
Gold has formed head and shoulder patter in weekly chart. Weekly close below 28900 will see sharp downside panic in gold till 28200---27600 and then to 27000 mark else it could test its resistance level of 29100 again.
Further upside rally will see only close above 29100 mark.
Silver
Clearly indicated below 41000…will see sharp downside panic till 40500…it made low of 40181.
Now what to expect?
Close below 40200 will take to 39800---39500. Three consecutive closes+ weekly close below 39500 will see sharp downside fall in it.
Immediate hurdle at 41000---41700
Crude oil
Support at 3030 and resistance at 3130.---3180
Either side break or close with volume will decide further.
Trade with levels only
Copper
Support at 368 and resistance at 376
Close below 368 will take to 362---358 mark. More and more downside panic will see only close below 358 else it could test it's resistance level of 376 again.
Further upside rally will see only close above 376 mark.
Trade with levels only
Major Economic Data Updates
04:00 P.M FOMC Member Bullard Speaks
08:00 P.M FOMC Member Dudley Speaks
08:00 P.M FOMC Member George Speaks
