Gold futures ended lower on Tuesday as the dollar strengthened against a basket of major currencies after US Federal Reserve Chair Janet Yellen said the central bank will likely need to raise interest rates at an upcoming meeting with the economy expanding further. The Federal Reserve chair struck a more hawkish tone than investors had expected, although she did flag considerable uncertainty over economic policy under the new Trump administration. Meanwhile, the Labour Department released a report showing that US producer prices rose by more than expected in the month of January. The Labour Department reported its producer price index for final demand climbed by 0.6 percent in January after rising by 0.2 percent in December. Economists had expected prices to increase by 0.3 percent
Crude oil futures made some recovery on Tuesday and ended higher ahead of US inventory data. The API will be reporting its figures for inventories at the end of last week late on Tuesday, while official data from the U.S. Energy Information Administration (EIA) is due on Wednesday. Last week, crude oil inventories in the U.S. jumped by 13.8 million barrels, inventories have been surging of late, and are expected to rise further. Meanwhile, the EIA has said that US oil production is projected to rise by 80,000 barrels a day in March at 4.873 million barrels per day.
Copper futures ended lower on Tuesday on hopes strike talks would restart at the world's biggest copper mine in Chile. Striking workers at Chile's massive Escondida copper mine have accepted a government invitation to try to resume dialogue with mine operator BHP Billiton as the strike entered its sixth day on Tuesday. Also pressuring base metals was a stronger dollar, which rebounded after Federal Reserve Chair Janet Yellen said it would be unwise to wait too long to raise US interest rates. However, persistent supply issues in Indonesia, where an export ban remained in place, capped some losses.
Technical Level
Gold
Support at 28900 and Resistance at 28200
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
Close 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 3520 and Resistance at 3600
Break and sustain below 3520 will take 3840—3450 else could touch its resistance level of 3600 again.
Looks positive only above 3600
Copper
Support at 400 and resistance at 409---415
Trade in a range with strict stop loss and wait for confirmation
Major Economic Data
07:00 P.M Core Retail Sales m/m: Previous 0.2%, Forecast 0.4%, Actual –??
Impact – Increase in Core retail sales - will have negative impact bullion and positive impact on base metals and dollar index vice – versa.
07:00 P.M Retail Sales m/m: Previous 0.6%, Forecast 0.1%, Actual –??
Impact – Increase in Retail sales - will have negative impact bullion and positive impact on base metals and dollar index vice – versa.
07:00 P.M Empire State Manufacturing Index: Forecast 6.5 Previous 7.2 Actual??
Impact – Increase in Empire State Manufacturing Index – 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 13.8M, Forecast 3.75M, Actual –??
Impact – Increase Crude Oil Inventories – will have negative impact on crude oil prices vice versa.
More will update soon!!
