Gold futures ended lower on Tuesday on expectations of raising US interest rates and improving sentiment for global economic growth, which mean investors are likely to favour risk assets such as equities. The Commerce Department showed that the US economy grew at a quicker than expected rate in the third quarter, expanding at the fastest pace in two years. The Commerce Department reported that gross domestic product grew by 3.2% on a year-over-year basis, up from the previously reported estimate of 2.9%. Another report from the Conference Board showed that US consumer confidence rebounded strongly in November, after a moderate decline in October. The consumer confidence index surged up to 107.1 in October from an upwardly revised 100.8 in October. Economists had been expecting the index to climb to 101.0. Though, some losses were capped as the US dollar turned negative against a basket of six major currencies.
Crude oil futures slumped again on Tuesday amid concerns that OPEC members will be unable to finalize an agreement on cutting production. There were also reports that Iran and Iraq are resisting pressure from Saudi Arabia to curtail oil output. The Organization of the Petroleum Exporting Countries will meet in Vienna on Wednesday aiming to implement a deal outlined in September to cut output by around 1 million barrels per day. Documents prepared for a ministerial OPEC meeting on Wednesday propose the group cut production by 1.2 million bpd from October levels. Meanwhile, Non-OPEC producer Russia confirmed that it would not attend the OPEC gathering, but added that a later meeting was possible.
Copper futures edged lower on MCX as participants indulged in reducing positions, driven by slackened demand from consuming industries in the spot market. Besides, Copper further declined as today being the last session of November expiry and a weak trend in the base metals pack at the London Metal Exchange (LME).
Technical Level
Gold (Feb)
Support at 28600 and resistance at 28900
Close below 28600 will take it to 28300—28200 and then to 27800 mark else could test its resistance level of 28900 again
Further upside rally will see only above 28900.
Silver
Support at 40000 and resistance at 41300---41800
Traders can trade in a range with strict stop loss and wait for confirmation
Crude oil
Support at 3150---3090 and resistance at 3300
Break and sustain above 3300 will see sharp upside rally till 3380—3450+ mark else could test its support level of 3150---3090 again
Traders can buy and accumulate Crude oil in panic around 3240---3220 and add more lot in panic around 3150. Stop loss 3090 for the upside target of 3380---3450+++ mark.
Copper (Feb)
Support at 388 and resistance at 402---408
Trade with levels only and wait for confirmation. Anything seems will update
Major Economic Data Updates
06:00 P.M ADP Non-Farm Employment Change: Previous 147k Forecast 161k, Actual –??
Impact – Increase in ADP Non-Farm Employment Change – will have positive impact on bullion and negative impact on base metals and dollar index or vice – versa.
07:00 P.M Core PCE Price Index m/m: Previous 0.1% Forecast 0.1%, Actual –??
Impact – Increase in Core PCE Price Index – will have negative impact bullion and positive impact on base metals and dollar index and vice – versa.
07:00 P.M Chicago PMI m/m: Previous 50.6 Forecast 52.1, Actual??
Impact - Increase in Chicago PMI – will have negative impact bullion and positive impact on base metals and dollar index and vice – versa.
08:30 P.M Pending Home Sales m/m: Previous 1.5% Forecast 0.3% Actual –??
Impact – Increase in Pending 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 -1.3M, Forecast 0.7M, Actual –??
Impact – Increase Crude Oil Inventories – will have negative impact on crude oil prices vice versa.
