Gold futures ended higher on Tuesday as unnerved investors bought bullion after the dollar was hit by US President Donald Trump's comments on currency devaluation by other countries. Yellow metal prices further improved on soft Consumer Confidence report. The Conference Board showed a drop in consumer confidence in the month of January. The consumer confidence index fell to 111.8 in January from a revised 113.3 in December. Traders were now looking ahead to the Federal Reserve's two-day meeting on monetary policy starting on Tuesday for further clues on the timing of the next US interest rate hike.
Crude oil futures recovered and moved higher on Tuesday, as traders see early signs that a coordinated effort to trim nearly 1.8 million barrels-per-day from global markets in the first half of 2017 is on track. Traders downplayed a report that Libya's crude oil production rose sharply in January despite OPEC quotas. Libyan production is at the highest level in the last three years. Market is looking for signs the US supply glut has dwindled after significant stockpile in increases earlier in January.
Copper futures ended higher on Tuesday as the dollar weakened against a basket of major currencies, with trading light due to the Lunar New Year break in the world’s top metals consumer China. Copper prices improved further on concerns over the potential supply disruptions in Chile. Workers at Chile's Escondida copper mine, the world's largest, entered the final stretch of voting on Monday on the company's wage offer. The workers' union said it was confident a strike would be approved.
Technical Level
Gold (APR)
We recommended buying in gold above 28730 ….it flared and made high of 28966.
Now what to expect??
Support at 28650 and resistance at 29000
Gold Looks positive and could touch its resistance level of 29000. Close above 29000 will take to 29080---29150 and then to 29340 mark else could touch its support level of 28650 again.
Trade with levels only
Silver
Silver has support at 41700 and resistance at 42200.
Close above 42200 will take it to 42500---42800 and then to 43300 mark else it could test its support level of 41700 again.
Further Downside panic rally will see only close below 41700 mark
Trade with levels only.
Crude oil
Support at 3540 and resistance at 3600--3630
Trading in range…Either side breakout with volumes will decide further till then traders can trade with strict stop loss.
Trade with levels only
Copper
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.
Major Economic Data
06:45 P.M ADP Non-Farm Employment Change: Previous 153K Forecast 165k Actual –??
Impact – Increase ADP Non-Farm Employment Change – will have negative impact on bullion and positive impact on base metals and dollar index or vice – versa.
08:30 P.M ISM Manufacturing PMI: Previous 54.70 Forecast 55.00 Actual –??
Impact – Increase in ISM Manufacturing PMI – will have negative impact on bullion and positive impact on base metals and dollar index or vice – versa.
08:30 P.M ISM Manufacturing Prices: Previous 65.5 Forecast 66.00 Actual –??
Impact – Increase in ISM Manufacturing Prices – will have negative impact on bullion and positive impact on base metals and dollar index or vice – versa.
09:30 P.M Crude Oil Inventories: Previous 2.8M, Forecast 2.6M, Actual –??
Impact – Increase Crude Oil Inventories – will have negative impact on crude oil prices vice versa.
More will update soon!!
