Gold on Wednesday held near three-month highs hit the session before, buoyed as political and economic uncertainty in the United States and Europe stoked safe-haven demand. "The biggest momentum behind gold is the fact that the U.S. Federal Reserve did not raise rates in the recent meeting, some uncertainties brought by U.S. President Donald Trump's policies and a weaker dollar. Controversy over Trump's temporary travel ban on people from seven Muslim-majority countries has recently boosted appetite for bullion as a safe-haven asset, while political uncertainty in Europe amid upcoming elections has buoyed the dollar.
Crude oil futures strengthened further on Friday amid hopes the global supply glut is dwindling. According to the International Energy Agency (IEA), most OPEC members have complied with their output quotas. The IEA also upgraded its forecast for 2017 demand growth to 1.4 million barrels a day, from 1.3 million barrels projected in its January report. Traders even overlooked the report of rig count increase, as the oil services firm Baker Hughes said the U.S. rig count rose 8 to 591 rigs this week, marking the most since the week of Oct. 23, 2015 when the count stood at 594. Drillers have added rigs at a furious pace this winter.
Copper futures edged higher on MCX as investors enlarged their holdings tracking the surge in the demand for the commodity in spot market. The prices found further support from a firming trend in overseas markets as workers at BHP Billiton Escondida in Chile, the World's largest copper mine, went on strike on Thursday. Furthermore, export ban at Freeport-McMoRan’s copper mine in Indonesia is increasing concerns of supply deficit. Meanwhile, the metal has been one of the major beneficiaries of the Trump trade.
Technical Level
Gold
Support at 28900 and Resistance at 28250--- 29400.
Traders can trade in a range with strict stop loss and wait for confirmation. Anything seems will update.
Silver
Support at 42200 and Resistance at 42750
Break and sustain above 42750 will take it to 43300---43800+ mark else could touch its support level if 42200 again.
Fresh selling can be initiated below 42200
Crude oil
Support at 3570---3520 and Resistance at 3620
Looks positive and could touch its resistance level of 3620. Close above 3620 will see further upside rally till 3680---3730 mark else it could test its support level of 3570---3520 again.
Looks weak only below 3520 mark on closing basis.
Copper
Support at 409 and resistance at 415
If unable to breach its resistance level if 415 then we can expect sharp downside panic in it and can touch its support level of 409 and then to 404---400 again.
Fresh buying can be initiated only above 415.00 mark.
More will update soon!!
