Gold futures edged higher on Monday as jitters over the resignation of Italian Prime Minister Matteo Renzi after losing a referendum on constitutional reform induced safe-haven buying. In the week ahead, markets will be paying close attention to speeches by Fed officials and US data on non-manufacturing activity and consumer confidence going into the holiday period.
Crude oil futures continued their surge on Thursday, after Russia joined the deal, the first of its kind between the Kremlin and OPEC in fifteen years. Earlier the OPEC surprisingly announced a deal to curb supplies. OPEC produces a third of global oil, or around 33.6 million barrel per day, and the deal aims to reduce output by 1.2 million bpd from January 2017, similar to January 2016 levels. While the Nymex crude crossed the $51/barrel, the brent crude surged to its highest in about 16 months. However, production in the US is expected to climb, as production overseas declines. President-elect Trump has also promised to open up previously prohibited lands to oil exploration and drilling once he is in office, just 50 days from now.
Crude oil futures extended their rally to post best week in at least five years on Friday, following OPEC's decision to cut crude output to rein in a global glut that has weighed on prices for more than two years. Traders even overlooked oil services firm Baker Hughes report that the number of active U.S. rigs drilling for oil climbed by 3 to 477 rigs this week. Oil drew support from a weak dollar, which slipped against a basket of currencies. Though, some profit-taking ahead of the weekend limited crude's price gains, also there was some pressure with data showing oil output in Russia rising in November to a post-Soviet high.
Technical Level
Gold
Support at 27780---27730 and Resistance at 28000---28225
Looks weak could test its support. More and more downside will see if closes below 27700 else could test its resistance level of 28000---28225 again
Fresh buying only above 28225 mark
Trade with levels only.
Silver
Support 40500 and Resistance 41400---41700
Traders can trade in a range with strict stop loss and wait for confirmation.
Crude oil
Support at 3480---3430 and resistance at 3600
Either side break or close with volume will decide further. Till then trade with levels only
Copper
Support at 396 and resistance at 405
Looks positive and could test its resistance level of 405. close above 405 will take to 409—412 and then to 415+ mark in days to come else could test its support level of 396 again
Further downside panic will see only close below 396 mark.
Major Economic Data Updates
07:00 P.M ISM Non-Manufacturing PMI: Previous 54.8, Forecast 54.9 Actual –??
Impact –Increase in ISM Non-Manufacturing PMI – will have negative impact on bullion and positive impact on base metals and dollar index or vice – versa.
More will update soon!!
