Gold futures edged higher on Monday as investors awaited a lineup of Fed speakers this week and the incoming president to set the tone and markets in Japan shout for a holiday. In the week ahead, investors will be looking ahead to US economic reports, particularly Friday’s retail sales figures for December. Investors will also be watching an appearance by Fed Chair Janet Yellen on Thursday and speeches by a handful of other Fed officials during the week, as well as President-elect Donald Trump on Wednesday for a press conference.
Crude oil futures strengthened further on Friday, on reports that Saudi Arabia cut production, as promised and Kuwait was also enforcing quotas on production. Traders overlooked the report of rise in rig counts. Oil-field services company Baker Hughes Inc. reported that the number of rigs drilling for oil in the US rose by four in the past week to 529. The rig count is up ten straight weeks, as US producers are getting more active amid stable oil prices. However, the strong US dollar limited price gains to some extent.
Copper futures traded marginally higher on Monday, though a solid US employment report strengthened the dollar making commodities more expensive for holders of other currencies. The Labor Department said Friday the US economy added 156,000 jobs in December, falling short of forecast for jobs growth of 178,000. The report also showed that the annual rate of wage growth rose to 2.9% in December from a year earlier, the strongest since 2009. The employment data indicated that the economy is improving enough for the Federal Reserve to keep pushing up interest rates.
Technical Level
Gold
Support at 27800 and Resistance at 28050
Break and sustain below 27800 will take it to 27550---27400 mark else could test its resistance level of 28050.
Further upside rally will see close above 28050
Trade with levels only
Silver
Support at 40200 and resistance at 40550--- 40800
Break and sustain below 40200 will take to 39900---39600. Further downside panic will see only close below 39600 else it could test it's resistance level of 40550---40800 again.
Further upside rally will see only close above 40800
Trade with levels only
Crude oil
Support at 3600 and resistance at 3690---3720
Break and sustain below 3600 will take to 3560---3525 mark. 3450 act as major support in Crude oil else it could test it's resistance level of 3690---3720 again.
Further upside rally will see on close above 3720 mark.
Trade with levels only
Copper
Support at 379 and resistance at 388
Trading in range and either side break with volumes will decide further. Till then traders can trade in range with strict stop loss and wait for confirmation
