Gold futures edged higher on Monday as the dollar slipped against a basket of major currencies and safe haven buying on uncertainties over US policy after Donald Trump was sworn in as president last Friday. In the week ahead, Trump's policy plans in his first days in office are likely to dominate headlines along with fourth quarter growth from the US on Friday and from the UK a day earlier. Tuesday’s data on euro area private sector activity will also be closely watched.
Oil prices declined during European morning hours on Monday, as prospects of rising U.S. production weighed on the market. Oilfield services provider Baker Hughes said Friday that the number of rigs drilling for oil in the U.S. last week jumped by 29 to 551, the largest weekly increase since a recovery in the rig count began in June and the highest level in around 14 months. The data raised concerns that the ongoing rebound in U.S. shale production could derail efforts by other major producers to rebalance global oil supply and demand. OPEC and non-OPEC countries have made a strong start to lowering their oil output under the first such pact in more than a decade, energy ministers said on Sunday as producers look to reduce oversupply and support prices.
Ministers said that 1.5 million barrels a day of the roughly 1.8 million in cuts pledged by OPEC and non-OPEC countries have already been taken out of the market.
January 1 marked the official start of the deal agreed by OPEC and non-OPEC member countries such as Russia in November last year to reduce output by almost 1.8 million barrels per day to 32.5 million for the next six months. The deal, if carried out as planned, should reduce global supply by about 2%.
Copper futures edged up on MCX as speculators widened fresh positions amid pick up in spot demand at the domestic markets. Further, firm global trend where the base metals led higher as the US President Donald Trump reiterated plans to spend big on infrastructure amid weakness in the dollar too, fuelled the uptrend.
Technical Level
Gold
Support at 28450 and Resistance at 28900
Gold forming double top pattern on daily chart….looks weak below 28620 will take to 28450. Further downside panic will see only close below 28450 mark else could test its resistance level of 28900.
Fresh buying can be initiated only close above 28900
Trade with levels only
Silver
Support at 41300---40800 and resistance at 42000
Close above 42000 will see sharp upside rally in it for the upside target of 42800---43200 and then to 44000+ mark in days to come
Else it could test it's support level of 41300---40800 again.
Further downside panic will see only close below 40800 mark.
Trade with levels only.
Crude oil
Support at 3565---3540 and resistance at 3680
If it unable to breach its support level of 3440 then will see sharp upside rally till 3650---3680.
Fresh downside panic will see only close below 3540.
Natural Gas
Support at 212 and resistance 219
Break and sustain above 219 will take it to 223—226 and then to 233+ else could touch its support level of 212.
Fresh selling below only 212.00
