Gold futures ended lower on Tuesday as the dollar strengthened against a basket of major currencies and US stocks traded mostly higher drawing investors’ attention away from the precious metal. Yellow metal prices declined further on expectations of a Federal Reserve interest-rate hike next week and the possibility that monetary policy will tighten at an accelerated pace in 2017.
Crude oil futures traded marginally higher on MCX as investors and speculators extended their positions in the energy commodity after the American Petroleum Institute (API) reported a fall of 2.2 million barrels in US crude supplies for the week ended December 2, building on a 720,000 barrel decline the previous week. Gasoline inventories rose 830,000 barrels and distillate jumped 4.1 million barrels, the largest build in more than two months. Cushing also recorded a major increase of 4.0 million barrels. Even though, some gains were capped by doubts whether a planned crude production cut led by OPEC and Russia would be deep enough to end a supply overhang that has dogged markets for over 2 years.
Copper futures traded higher on MCX buoyed by signs that global manufacturing activity will return to a firmer footing next year, and as metals attracted fresh interest from investors. New orders for US factory goods recorded their biggest increase in nearly 1-1/2 years in October, further evidence that the manufacturing sector is gradually recovering after a prolonged downturn and as demand signals from China also improve.
Technical Level
Gold
Support at 27800 and Resistance at 28000
Two consecutive close + weekly close below 27800 will take it to 27400—27100 mark in days to come else could test its resistance level of 28000.
Fresh buying can be initiated only above 28250.
Trade with levels only.
Silver
Support 40800 and Resistance 41600--41900
Traders can trade in a range with strict stop loss and wait for confirmation.
Crude oil
Support at 3360 and resistance at 3540---3600
Above 3500...it could test its resistance level of 3540---3600. Further upside rally will see only close above 3600 mark else it could test its support again.
Further downside panic will see only close below 3360 mark.
Trade with levels only and wait for confirmation
Copper
Support at 396 and resistance at 412--418
Looks positive and could test its resistance level of 412--418…further upside rally on close above 418+ else could test its support level of 396.
Further downside panic will see only close below 396 mark.
Major Economic Data Updates
07:00 P.M JOLTS Job Openings: Previous 5.49M, Forecast 5.53 Actual –??
Impact –Increase in JOLTS Job Openings – 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 -0.9M, Forecast -1.4M, Actual –??
Impact – Increase Crude Oil Inventories – will have negative impact on crude oil prices vice versa.
