Gold futures ended higher on Wednesday as subdued cash demand and investor short-covering helped offset a stronger US dollar. Yellow metal prices further improved by a drop in stocks, with the DJIA unable to crack the elusive 20,000 mark. Also, a report from the National Association of Realtors unexpectedly showed a sharp pullback in US pending home sales in the month of November. The pending home sales index tumbled by 2.5 percent to 107.3 in November after inching up by 0.1 percent to a revised 110.0 in October. A recent spate of disappointing economic data may signal a winter slowdown that would prevent the Federal Reserve from raising interest rates.
Crude oil futures moved further high on Wednesday, touching their 17-Month highs ahead of U.S. inventories data. Traders were encouraged by a report from the National Association of Realtors which unexpectedly showed a sharp pullback in U.S. pending home sales in the month of November. The Energy Information Administration (EIA), a division of the Department of Energy, is coming out with its final report on the year on Thursday. Prices got some support with Iraqi Oil Minister Jabar Ali al-Luaibi stating that his country plans to cut supply by 200,000-210,000 bpd from January. The remarks were made during a visit to Kuwait, which is also expected to trim output next year along with other OPEC members, and some producers in allied countries.
Copper futures ended marginally lower on Wednesday, even though declining inventories and expectations of stronger demand in the world’s largest copper consumer China persuaded buyers to return to the market.
Technical Level
Gold
Support at 27000---26850 and Resistance at 27500
Break and sustain above 27500 will take it to 27700—27800 else could test is support level of 27200---27000 and then to 26850 mark again
Gold moved up but looks dicey at upper levels. So traders remain cautious at upper levels.
Anything seems will update
Silver
As expected... Silver skyrocketed and made a high of 39843. We clearly indicated to buy around 38900 mark
Now what to expect???
Break and close above 39900 will take it to 40300---40800 marks else it could test its support level of 39300---38900 again.
Trade with levels only
Crude oil
Support at 3640---3600 and resistance at 3720.
Close above 3720 will take to 3780---3850+ mark.
Any sharp downside will be buying opportunity around 3640---3630 with stop loss below 3600 on closing basis.
Copper
Support at 375 and resistance at 383
Close above 383 will take to 387---393 mark else could test its support level of 375 again.
Close below 375 will take it to 371—368 mark.
363 act as major support.
Trade with levels
Major Economic Data Updates
07:00 P.M Unemployment Claim: Previous 275K Forecast- 277k Actual –??
Impact – Increase in Unemployment Claims – will have positive impact on bullion and negative impact on base metals and dollar index or vice – versa.
09:00 P.M Natural Gas Storage: Previous -209B, Forecast -219B, Actual –??
Impact – Increase Natural Gas Storage – will have negative impact on natural gas prices or vice versa.
09:30 P.M Crude Oil Inventories: Previous -2.3M, Forecast -1.3M, Actual –??
Impact – Increase Crude Oil Inventories – will have negative impact on crude oil prices vice versa.
07:00 P.M Unemployment Claim: Previous 275K Forecast- 277k Actual –??
Impact – Increase in Unemployment Claims – will have positive impact on bullion and negative impact on base metals and dollar index or vice – versa.
09:00 P.M Natural Gas Storage: Previous -209B, Forecast -219B, Actual –??
Impact – Increase Natural Gas Storage – will have negative impact on natural gas prices or vice versa.
09:30 P.M Crude Oil Inventories: Previous -2.3M, Forecast -1.3M, Actual –??
Impact – Increase Crude Oil Inventories – will have negative impact on crude oil prices vice versa.
