Gold futures ended higher on Monday as US dollar weakened against a basket of key world currencies and uncertainty for trade and economic growth at the start of Donald Trump’s presidency. Trump formally withdrew the United States from the Trans-Pacific Partnership trade deal and told US manufacturing executives he would impose a hefty border tax on firms that import products after moving American factories overseas.
Crude oil futures were unable to hold their last session gains and ended lower on Monday, amid speculation that US production will surge in 2017. US energy companies last week added the most oil rigs in nearly four years. The data raised concerns that the ongoing rebound in US shale production could derail efforts by other major producers to rebalance global oil supply and demand. U.S. oil production has risen by more than 6 percent since mid-2016, though it remains 7 percent below the 2015 peak, and is back to levels of late 2014 when oil started a sharp drop from above $100 a barrel.
Copper futures ended marginally higher on Monday, buoyed by a weaker dollar and as US President Donald Trump reiterated plans to spend big on infrastructure. In his inauguration speech on Friday, Trump promised to generate new investments to rebuild highways, bridges, airports and other infrastructure. However, he did not go into specifics and there was no mention of plans to outlay $1 trillion in spending over a 10-year period that accompanied his November victory speech.
Technical Level
Gold
Support at 28700 and Resistance at 28900
Break and sustain below 28700 will take it to 28620---28580 and then to 28450.
Further downside panic will see only close below 28450 else it could test it's resistance level of 28900
Close above 28900 will take to ???
Trade with levels only
Silver
Support 41550--- 41050. Forming rising wedge pattern on four hourly chart.
Break and sustain below 41550 will take to 41200---41050 mark.
Two consecutive closes below 41050 will see sharp downside fall of almost 2300 points.
Else it could test it's resistance level of 41850 and then to 42400---42700+++ mark on days to come
Trade with levels only.
Trade with levels only.
Crude oil
Support at 3570---3540 and resistance at 3680
Either side break or close with volume will decide further.
Till then traders can trade in a range with strict stop loss and wait for confirmation.
Copper
Support at 395 and resistance at 405—408
Looks positive and could touch its resistance level of 405—408. Further upside rally will see on close above 408 else could touch its support level of 395 again.
Fresh selling can be initiated below 395
Major Economic Data
07:30 P.M Existing Home Sales: Previous 5.54M Forecast 5.61M Actual –??
Impact – Increase in Existing Home Sales – will have negative impact on bullion and positive impact on base metals and dollar index or vice – versa.
