Gold futures ended higher on Monday as signs of growing inflation and a steep decline in US equities helped to raise investment demand in the precious metal. Yellow metal prices further improved as political uncertainty created by US President Donald Trump's move to ban people from seven Muslim-majority countries, and by elections in Europe. As well as the Fed due on Wednesday, global financial markets will be busy with central bank meetings in the week ahead, with policy decisions due in the UK and Japan. Investors will also keep an eye out on key economic data, with the monthly US employment report in the spotlight.
Crude oil futures extended their fall on Monday after trading in a narrow range through the day. Traders weighed the supply response of U.S. shale drillers to prices above $50 a barrel, despite a report by Petro-Logistics SA showing that global oil supplies are falling. Traders were a bit concerned by Commerce Department report showing that personal income increased by slightly less than expected in the month of December. Investors were also keeping an eye on central bank policy reviews in Japan due Tuesday in Asia, as well as the US and UK slated later this week.
Copper futures ended lower on Monday as optimism over US President Donald Trump's capacity to drive economic growth fades. The new US immigration curbs put the spotlight back on the risks of Trump's protectionist bent, spooking investors. Further, base metals were muted in Asian trade as China's week-long Lunar New Year holiday drained the markets of liquidity and direction.
Technical Level
Gold
Support at 28550 and resistance at 28730
Looks positive and could touch its resistance level of 28730. Close above 28730 will take to 28900---29080 mark else could touch its support level of 28550 again.
Fresh selling can be initiated below 28550 mark
Trade with levels only
Silver
Silver has support at 41300 and resistance at 42000.
Break and sustain below 41300 will take to 40800---40500 and then to 39700 mark else it could test its resistance level of 42000 again.
Further upside rally will see only close above 42000 mark
Trade with levels only.
Crude oil
Support at 3540 and resistance at 3600--3630
If it unable to breach its support level of 3540 then will expect Crude oil to touch the resistance level of 3600—3630 again
Fresh selling can initiate only close below 3540 mark.
Trade with levels only
Copper
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Support at 398 and resistance at 410
Either side break or close with volume will decide further. Till then trade in a range with levels only.
More will update soon...
