Gold futures ended higher on Tuesday on concerns about a winter economic lull in the US have bolstered gold's safe haven appeal. Though, some gains were capped due to the pressure from upbeat data on US manufacturing, a rise in global stocks and strength in the US dollar. The Institute for Supply Management (ISM) showed that growth in manufacturing activity accelerated by more than anticipated in December. The ISM reported its purchasing manager’s index climbed to 54.7 in December from 53.2 in November, with a reading above 50 indicating growth in the manufacturing sector.
Crude oil futures suffered sharp decline on Tuesday, plunging from their highest since 2015 amid doubts about whether OPEC production cuts will re-balance the oil markets. There were some worries in the market about production increases in Libya and Nigeria, which are both allowed to ramp up production as part of the OPEC deal. Prices were also under pressure with a Genscape data showing a large build in crude inventories at the Cushing hub. The inventory data released by Genscape revealed a build of 1,038,251 barrels for the week ending December 30th.
Copper futures ended lower on Tuesday as dollar rose to a new 14-year high against a basket of major currencies after US manufacturing activity grew by more than expected in November, making dollar-denominated assets such as copper more expensive for holders of other currencies. The Commerce Department reported that US construction spending increased 0.9 percent to $1.18 trillion in November, reaching its highest level in 10-1/2 years, and the institute for supply management reported manufacturing prices paid and purchasing managers' prices had also outpaced expectations.
Technical Level
Gold
Support at 27650 and Resistance at 27850
Three Consecutive close + weekly close above 27850 will take it to 28050–28200 and then to 28500 mark in days to come else it could test its support level of 27650 again
Break and sustain below 27650 will take to 27400 and then to 27150---27080 mark
Trade with levels only
Silver
Clearly indicated to buy around 39500. Flared and made a high of 40570.
Now what to expect???
Looks positive can could test its resistance level of 40600—40900 mark. Further upside rally will see on close above 40900
Fresh selling can be initiated only close below 39600
Crude oil
Support at 3550 and resistance at 3620---3650
Break and sustain below 3550 will take it to 3500—3480 mark else it could test its resistance level of 3620—3650 again.
Further upside rally will see on close above 3650.
Natural Gas
Support at 224---221 and resistance at 230—233
Either side break or close with volume will decide further. So trade in a range with strict stop loss and wait for confirmation
Copper
Support at 374 and resistance at 380—384.50
Looks weak and could test its support level of 374. Break and close below 374 will take it to 369—366 mark else could test its resistance level of 380---384.50 again.
Trade with levels only
Nickel
Support at 670 and resistance 700
Three consecutive close + weekly close below 670 will see free fall in days to come else could test its resistance level of 700 again
Further upside rally will see only close above 700.
Trade with levels only.
Lead
Support at 135 resistance at 139---142.50
Trading in range; either side breakout with volumes will decide further.
Zinc
Support at 172 resistance at 176.50
Break and sustain below 172.00 will take it to 169.00—166 and then to 160 mark else could test its resistance level of 176.50 again
Trade with levels only
Aluminium
Support at 114 and resistance 116
Break and sustain below 114 will take it to 112—111 else could test its resistance level of 116.
Fresh buying can be initiated only close above 116
