Gold futures ended higher on Wednesday as the dollar slipped against the euro ahead of a European Central Bank meeting. Though, some gains were capped on expectations for an interest rate increase by the Federal Reserve at its December 13-14 meeting.
Crude oil futures extended their weakness on Wednesday and made another lower close. The prices settled at their lowest level in a week after U.S. government data revealed a weekly decline in crude stockpiles, though petroleum-product inventories rose much more than expected. The Energy Information Administration (EIA) reported that domestic crude supplies fell by 2.4 million barrels for the week ended Dec. 2, however Gasoline supplies climbed by 3.4 million barrels and distillate stockpiles rose 2.5 million barrels.
Copper futures ended lower on Wednesday as concerns that the metal's rally had become overstretched prompted selling. Market sentiments were somewhat subdued as traders and investors are awaiting Thursday’s regular meeting of the European Central Bank, and also looked ahead to next week's Federal Reserve meeting, when the US central bank is expected to raise interest rates but adopt a cautious tone on the economy. However, prospects of higher demand from the world's largest economies, capped some losses.
Soybean futures traded edged lower on NCDEX as speculators trimmed their positions, tracked by lower prices in international markets on oversupply woes after data showed that Brazilian soy bean crop is estimated up year on year at 103.1 million tons up by 7.6 million tons last season. Further, subdued demand in export market too added pressure on soybean prices. However, Argentina's continuous dry weather condition, capped some losses.
Technical Level
Gold
Support at 27800 and Resistance at 28000
Break and sustain below 27800 will take it to 27600—27450 mark in days to come else could test its resistance level of 28000.
Fresh buying can be initiated only above 28000
Trade with levels only.
Silver
Support 41550 and Resistance 42000
Below 41550…….it can touch its support level of 41200---41000 else it could test its resistance level of 42000 again
Further upside rally will see if close above 42000
Crude oil
Support at 3330 and resistance at 3430
Looks positive and could test its resistance level of 3430.
Further upside rally will see above 3430 else could test its support level of 3330.
Fresh selling can initiate only close below 3330 mark
Trade with levels only
Copper
Support at 390 and resistance at 396.50
Break and sustain above 396.50 will take to 402---405 else it could test its support level of 390 again.
Further downside panic will see only close below 390.
Major Economic Data Updates
07:00 P.M Unemployment Claim: Previous 268K Forecast 258K, Actual –??
Impact – Increase in Unemployment Claims – will have positive impact on bullion and negative impact on base metals and dollar index or vice – versa.
10:30 P.M Natural Gas Storage: Previous -50B, Forecast -44B, Actual –??
Impact – Increase Natural Gas Storage – will have negative impact on natural gas prices or vice versa.
