All EYES ON FOMC MEET
Gold futures edged higher on MCX on a weaker dollar. However, the Fed is widely expected to increase US interest rates at this week's Federal Open Market Committee meeting, with investors looking for clues on the central bank's views on further hikes in 2017.
Crude oil futures extended their gaining streak on Tuesday after OPEC's historic deal with Russia to curb oil supplies. Prices also got some encouragement with US President-elect Donald Trump choosing ExxonMobil CEO Rex Tillerson to serve as secretary of state. Though, the gains were mild ahead of US inventories data on Wednesday and some investors taking profits based on recent market gains, but the market remained broadly supported by the deal to cut output.
Copper futures ended lower on Tuesday as the US central bank is widely expected to hike interest rates for the first time in 2016 at the end of the two-day meeting. Copper prices weakened further data showed another big inflow of inventories into LME-certified warehouses. Reports showed that more than 50,000 tonnes of copper has arrived in the space of two days, sending on-warrant copper stocks - those not earmarked for delivery - up 47 percent to 160,375 tonnes.
Soyabean futures edged higher on NCDEX on account of good crushing demand from the mills. However, improving arrivals in the domestic market and forecasts of rains in Argentina's key producing regions, capped some gains.
Technical Level
Gold
Support at 27400 and resistance at 27800
All eyes on FOMC meet…..forming symmetrical triangle pattern in hourly chart.
Either side break with volumes will decide further.
Trade with levels only.
Silver
Support 41000---40600 and resistance 42000
Traders can trade in a range with strict stop loss and wait for confirmation.
Further upside rally will see if close above 42000
Crude oil
Support at 3500--3440 and resistance at 3600—3660
Trend looks positive and can touch 3600—3660. Further upside rally will see on close above 3660 else could test its support level of 3500---3440 again
Trade with levels only
Copper
Support at 384 and resistance at 393---398
Break and sustain below 384 will take to 378---372 mark else it could test its resistance level of 393---398 again.
Further upside rally will see only close above 398.
Soyabean
Support at 3030---2980 and resistance at 3150.
Either side break or close with volume will decide further.
So traders can trade in a range with levels only.
Major Economic Data Updates
07:00 P.M Core Retail Sales m/m: Previous 0.8%, Forecast 0.4%, Actual –??
Impact – Increase in Core retail sales - will have negative impact bullion and positive impact on base metals and dollar index vice – versa.
07:00 P.M PPI m/m: Previous 0.0%, Forecast 0.1%, Actual –??
Impact – Increase in PPI - will have negative impact bullion and positive impact on base metals and dollar index vice – versa.
07:00 P.M Retail Sales m/m: Previous 0.8%, Forecast 0.4%, Actual –??
Impact – Increase in Retail sales - will have negative impact bullion and positive impact on base metals and dollar index vice – versa.
09:00 P.M Crude Oil Inventories: Previous -2.4M, Forecast -1.4M, Actual –??
Impact – Increase Crude Oil Inventories – will have negative impact on crude oil prices vice versa.
