Gold futures ended higher on Tuesday as some investors bet that a strengthening US economy will bring inflation in the New Year. Yellow metal prices further improved on weak Japanese inflation data, but trading was thin with traders in the United States returning after the long Christmas weekend and London markets still closed. Data showed Chinese industry racked up its strongest profit growth in three months in November, suggesting the world's second-largest economy was improving. In Japan, however, core consumer prices fell in annual terms for the ninth month as household spending slumped.
Crude oil futures extended their gains to the new week on Tuesday, set to end 2016 at the highest level of the year. Though, the trading activity remained light as many traders remained in holiday mode between Christmas and New Year’s, but expectations of tighter supply once the first output cut deal between OPEC and non-OPEC producers in 15 years takes effect on Sunday, lifted the crude prices higher. Oil rallied further after news that the members of an OPEC and non-OPEC committee formed to monitor the market may meet on Jan. 13, which may give an early indication of compliance with the deal.
Copper futures ended higher on Tuesday as some investors emerged out of the holiday lull to hunt for bargains as the market entered the last trading stretch of the year, while the London Metal Exchange (LME) was closed for the Christmas holiday.
Technical Level
Gold
Support at 27000---26850 and Resistance at 27450
Either side break or close with volume will decide further. Till then traders can trade in a range with strict stop loss and wait for confirmation.
Silver
Support at 38900----38300 and resistance 39550
Break and sustain above 39550 will take it to 39900—40300 and then to 40850 marks else could test its support level of 38900—38300 again.
Further downside panic will see if close below 38300 mark.
Crude oil
Support at 3640---3600 and resistance at 3730
Looks positive and could test its resistance level of 3730. Break and close above 3730 will take it to 3780---3820+ marks in days to come.
Support intact at 3640---3600.
Trade with levels only
Copper
Support at 376 and resistance at 383
Close above 383 will take to 387---393 mark else could test its support level of 376 again.
Close below 376 will take it to 372—369 mark. 363 act as major support in Copper for this week.
Trade with levels
