Gold futures ended higher on Tuesday as concerns over the outcome of the US election sparked losses in stocks and the dollar, prompting investors to seek out precious metals as a haven from risk. Meanwhile, the traders are also awaiting the US Federal Reserve’s monetary policy announcement due Wednesday at the conclusion of the central bank’s two-day meeting. The meeting isn't expected to produce an interest-rate hike, but could shed light on the chances for such a move by the end of the year, a potentially gold-negative development.
Crude oil futures extended southward journey on Tuesday, hitting one-month lows on renewed doubts that Organization of the Petroleum Exporting Countries (OPEC) will back out of a plan to curb production. Iraq, Iran and others complain they should be exempt from any production quotas after years of losing market share due to war and sanctions. Crude prices also remained under pressure as U.S. gasoline prices pared an early rally sparked by a pipeline blast. Meanwhile, economic jitters in the US have been made worse by the prospect Hillary Clinton will squander the upcoming election.
Copper futures ended higher on Tuesday, supported by an improved demand outlook in China, the world's key consumer of industrial metals, after a gauge of Chinese manufacturing activity reached its highest level in two years. Reports showed that the official Purchasing Managers' Index, a comprehensive gauge reflecting operational conditions in largely state-owned manufacturing companies, increased 0.8 points from a month earlier to 51.2 in October. Further, a weaker US dollar too added support to copper prices.
Technical Level
Gold
Above 29880...Our target was 30300---30550. Flared and made a high of 30488
Now what to expect???
Support at 30200---30000 and resistance at 30500
Close above 30500 will take to 30800---31000+++ mark else it could test its support level of 30200---30000 again.
Further downside panic will see only close below 30000 mark
Intraday traders can buy Gold around 30250---30200 with strict stop loss below 30000 for the initial upside target of 30400---30500
Trade with levels only... Don't hold position for tommorow as all eye on FOMC meet.
Silver
Silver has support at 43300 and resistance at 44000.
Above 44000…… will take it 44400—44800+ mark else could test its support level of 43300 again
Fresh selling below 43300
Trade with levels only
Crude oil
Below 3120....our target was 3070---3025. Just made s low of 3073.
Below 3070 will see further downside panic till 3025---2980 mark else it could test its resistance level of 3120 again.
Those are holding short as per our level can book part profit and revise stop loss at cost to cost.
Trade with levels only
Copper
Support at 324 and resistance at 329
Either side break or close with volume will decide further. Till then traders can trade in a range with levels only.
Major Economic Data Updates
05:45 P.M ADP Non-Farm Employment Change: Previous 154K Forecast 166K, Actual –??
Impact – Increase in Non-Farm Employment Change – will have negative impact bullion and positive impact on base metals and dollar index or vice – versa
08:00 P.M Crude Oil Inventories: Previous -0.6M, Forecast 1.6 M, Actual –??
Impact – Increase Crude Oil Inventories – will have negative impact on crude oil prices vice versa.
11.30 P.M FOMC Statement
11.30 P.M Federal Funds rate
