Gold futures ended higher on Wednesday as the US dollar weakened against a basket of major currencies ahead of the release of minutes from the Federal Reserve’s December meeting, at which the US central bank hiked interest rates and signalled it expects to raise interest rates three times in 2017. Yellow metal prices further improved as the physical demand from major consumers China and India increased.
Crude oil futures bounced back on Wednesday, after big losses in previous session, as traders looked ahead to U.S. inventories data and reports indicating that American stockpiles of oil had declined. Also, the greenback dipped on Wednesday, making dollar-denominated fuel purchases in other currencies cheaper. Crude prices were also bolstered by improving economic growth in mature and emerging markets.
Copper futures ended higher on Wednesday as the dollar retreated from a 14-year high after minutes from the Federal Reserve’s latest meeting showed central bankers were uncertain about what effect the incoming presidential administration would have on the US economy. Besides, strong manufacturing data from the United States and China too supported copper prices’ uptrend. Copper prices improved further as China plans to add 2,100 km of track to its railway network this year bolstering demand expectations. Another positive for copper was a drop in stocks at LME-approved warehouses. At 305,875 tonnes, stocks are down 11.5 percent since December 16.
Technical Level
Gold
Support at 27750 and Resistance at 27900
Upside seems limited in gold….break and sustain below 27750 will take it to 27550—27400 mark else could test its resistance level of 27900.
Further upside rally will see close above 27900
Trade with levels only
Silver
Support at 40000--39600 and resistance at 40800
Break and sustain above 40800 will take it to 41200—41450 and then to 42000+ mark in days to come else could test its support level of 40000---39600.
Fresh selling can be initiated below 39600
Crude oil
Support at 3550 and resistance at 3650
Break and sustain above 3650 will take it to 3720---3750 and then to 3780+ mark else it could test its support level 3550 again.
Further downside panic will see on close below 3550.
Copper
Support at 379--376 and resistance at 388
Above 388… it can touch 392—396 and then to 402+ mark in days to come… else could test its support level of 379—376 mark.
Fresh selling can be initiated below 376.
Trade with levels only
Major Economic Data Updates
08:30 P.M – ISM Non-Manufacturing PMI– Previous 57.2 Forecast 55.6 Actual –??
Impact - – ISM Non-Manufacturing PMI – will have negative impact bullion and positive impact on base metals and dollar index vice – versa.
09:30 P.M Natural Gas Storage: Previous -237B, Forecast -97B, Actual –??
Impact – Increase Natural Gas Storage – will have negative impact on natural gas prices or vice versa.
09:30 P.M Crude Oil Inventories: Previous 0.6M, Forecast -1.8M, Actual –??
Impact – Increase Crude Oil Inventories – will have negative impact on crude oil prices vice versa.
