Gold futures edged higher on MCX despite the release of minutes from the Federal Reserve policy meeting earlier this month amid expectations of an interest rate hike in December.
Crude oil futures pared some gains on Tuesday after hitting their highest levels since October, as traders cashed in on the strong upward move seen in the previous session and amid fresh doubts over whether the Organization of the Petroleum Exporting Countries (OPEC) will be able to reach an agreement to limit output. There were reports that Iran, Iraq and Indonesia have doubts about the proposed output cut, aimed at curbing oversupply that has pressured prices lower for more than two years. OPEC is trying to bring its members and non-OPEC producer Russia to agree on a coordinated cut to prop up the market.
Copper futures ended higher on Tuesday, supported by signs of tighter supply and with investors broadly betting on rising US inflation. Global copper inventories tracked by the LME have declined 35 percent since the end of September on withdrawals from Asian warehouses. Copper prices improved further on increased demand as the Chinese are buying up metal as a hedge against yuan depreciation. Furthermore, report showing a surge in US existing home sales last month cemented bets on multiple rate hikes going forward.
Soybean futures edged lower on NCDEX as speculators trimmed positions, even as supplies in the spot market is not picking up amid cash as well as supply crunch in all the Agricultural Produce Market Committees (APMCs) mandis.
Technical Level
Gold
Support at 29050 and resistance at 29250.
Below 29050 it can touch 28900 mark. Further downside panic will see only close below 28900 mark else could test its resistance level of 29250
Further upside rally will see only close above 29250 mark.
Silver
Support at 40550 and resistance at 41200
Break and sustain below 40550 will take to 40250---40000. Further downside panic will see only close below 40000 else it could test its resistance level of 41200 again.
Break and sustain above 41200 will take to 41700---42000 and then to 42300 mark
Trade with levels only
Crude oil
Support at 3270 and resistance at 3330--3365
Break and sustain below 3270 will take it to 3230—3180 mark else could test its resistance level of 3330---3365 again.
Trade with levels only
Copper
Support at 380 and resistance at 388
Break and sustain above 388 will take it to 394—398 and then to 404+ mark in days to come else it could test its support level of 380 again
Looks weak only close below 380 mark
Trade with levels only
Nickel... Support at 770 and resistance at 785
Lead... Support at 148.50 and resistance at 151.50
Zinc... Support at 176 and resistance at 178.00
Aluminum... Support at 118 and resistance at 121
Natural gas...Support at 199 and resistance at 208
Major Economic Data Updates
07:00 P.M Core Durable Goods Orders m/m: Previous 0.1% Forecast 0.2%, Actual??
Impact - Increase in Core Durable Goods – will have negative impact bullion and positive impact on base metals and dollar index and vice – versa.
07:00 P.M Durable Goods Orders m/m: Previous -0.3% Forecast 1.2%, Actual ??
Impact - Increase in Core Durable Goods – will have negative impact bullion and positive impact on base metals and dollar index and vice – versa.
07:00 P.M Unemployment Claim: Previous 235K Forecast 241K, Actual –??
Impact – Increase in Unemployment Claims – will have positive impact on bullion and negative impact on base metals and dollar index or vice – versa.
08:30 P.M New Home Sales: Previous 593K Forecast 5.91K Actual –??
Impact – Increase in New Home Sales – will have negative impact on bullion and positive impact on base metals and dollar index or vice – versa.
09:00 P.M Crude Oil Inventories: Previous 5.3M, Forecast 0.3M, Actual –??
Impact – Increase Crude Oil Inventories – will have negative impact on crude oil prices vice versa.
10:30 P.M: Natural Gas Storage: Previous 30B, Forecast 7B, Actual –??
Impact – Increase Natural Gas Storage – will have negative impact on natural gas prices or vice versa.
