Gold futures ended higher on Wednesday despite the dollar strength on the heels of the US Federal Reserve’s decision to raise interest rates for the first time in 12 months. The Fed ended its two-day meeting with a statement that was more hawkish than expected in the wake of a string of generally strong economic reports and as the Trump administration takes over with promises to boost growth through tax cuts, spending and deregulation. Janet Yellen, the Fed chairwoman, announced that the central bank was raising interest rates by 0.25%, and that it planned three additional rate hikes next year.
Crude oil futures suffered sharp slump after the government reported a build in US oil inventories, also as the Fed released a very hawkish report on its future US interest rate policy, a hike in US interest rates drove money away from commodities. Data from the U.S. Energy Information Administration (EIA) showed that commercial crude inventories last week declined by 2.56 million barrels to 483.19 million barrels. Gasoline stocks rose by 497,000 barrels, while distillate stockpiles, which include diesel and heating oil, fell by 762,000 barrels. However, the crude stocks at the Cushing, Oklahoma delivery hub rose by 1.2 million barrels. EIA data also showed that refinery utilization rates rose by 0.1 percentage points and refinery crude runs rose by 57,000 barrels per day.
Copper futures edged higher on MCX as participants raised their bets, amid pick-up in demand at the domestic spot markets. Further, firming trend in base metals on the London Metal Exchange (LME) too fueled the uptrend.
Technical Level
Gold
Support at 27050 and Resistance at 27250---27400
Break and close below 27050 will take to 26900 and then to 26600---26450 mark
Any sharp rise will be selling opportunity in Gold. Stop loss intact 27400
Silver
Not able to breach it's resistance level of 42000 and crashed vertically and made a low of 40060
Now what to expect???
Support at 40500 and resistance 41600---42000
Support at 39800---39500. Three consecutive closes + weekly close below 39500 will see free fall in Silver else we will expect dead cat bounce again.
Any sharp rise will be selling opportunity...
Immediate hurdle at 40850
Crude oil
Support at 3440 and resistance at 3530.
Break and sustain below 3440 will take it to 3400---3370 and then to 3330 mark else could tests its resistance level of 3530 again.
Further upside rally will see on close above 3530 mark
Trade with levels only
Copper
Support at 387---384 and resistance at 394.50
Break and sustain below 384 will take to 378---372 mark else it could test its resistance level of 394.50 again.
Further upside rally will see only close above 394.50.
Major Economic Data Updates
07:00 P.M CPI: Previous 0.4% Forecast 0.2% Actual –??
Impact – Increase in CPI – will have negative impact bullion and positive impact on base metals and dollar index vice – versa.
07:00 P.M Core CPI: Previous 0.1% Forecast 0.2% Actual –??
Impact – Increase in Core CPI – will have negative impact bullion and positive impact on base metals and dollar index vice – versa.
07:00 P.M Philly Fed Manufacturing Index: Previous 7.6 Forecast 9.1 Actual –??
Impact – Increase in Manufacturing Index – will have negative impact on bullion and positive impact on base metals and dollar index or vice – versa.
07:00 P.M Unemployment Claim: Previous 258K Forecast- ??, Actual –??
Impact – Increase in Unemployment Claims – will have positive impact on bullion and negative impact on base metals and dollar index or vice – versa.
07:00 P.M Empire State Manufacturing Index: Forecast 1.5 Previous 3.2 Actual??
Impact – Increase in Empire State Manufacturing Index – will have negative impact on bullion and positive impact on base metals and dollar index or vice – versa.
10:30 P.M Natural Gas Storage: Previous -42B, Forecast -126B, Actual –??
Impact – Increase Natural Gas Storage – will have negative impact on natural gas prices or vice versa.
