Gold on Wednesday holds near six weeks high on safe heaven demand. Markets though waiting for the indications on policy from US President elect Donald Trump’s first news conference since the US election, due later in the day.
The gold prices seems remain to be more volatile than usual. Further in addition to US dollar weakness, the gold rally has depended on a pullback in US bond yields and some moderation in equity gains.
The outlook of the gold will be more clear after the Federal Reserve Chair Janet Yellen meeting on Thursday.
Crude oil prices closed lower in the domestic market on Tuesday weighed by worries about an increase in US production and doubts that global producers will make an agreement to curb output. But today since morning crude oil futures traded up on MCX as the investors built some fresh positions following an uptick in demand at the domestic spot market. Further, restricted supplies from producing regions also added support to crude oil prices uptrend.
Copper futures edged higher on MCX as speculators raised their bets, supported by increasing demand from consuming industries. Further, bullish trend in base metals at the London Metal exchange (LME) also added support to copper price uptrend.
Technical View
GOLD
Support at 28050 and Resistance around 28400
Gold looks positive and can touch its resistance level of 28400. Further upside rally will on close above 28400, else it can touch its support level of 28100 again.
Further downside panic will see only close below 28050 mark
SILVER
Support around 40900 and Resistance around 42000
Silver trend is bullish. Break and sustain above 41400 will take it to 41700---42000+ mark in days to come.
Support at 40900---40500---40200
CRUDE
Support at 3450---3420 and Resistance around 3530---3580
Crude looks weak below 3480 and could test 3450—3420 else could test its resistance level of 3530---3580 again.
Fresh buying can be initiated above 3580
COPPER
Support at 392 and Resistance around 400
Above 400 we can expect sharp upside rally till 408—415+ mark else it could touch its support level of 392.
Fresh selling can be initiated below 392.
ECONOMIC DATA
09:00 P.M Crude Oil Inventories: Previous -7.1M, Forecast 0.9M, Actual –??
Impact – Increase Crude Oil Inventories – will have negative impact on crude oil prices vice versa.
