Gold futures ended lower on Tuesday as renewed expectations of an increase in US interest rates next month pushed the dollar higher, although political and economic uncertainties in Europe and the United States supported investor sentiment. Market players are also looking ahead to Wednesday's minutes of the Fed’s latest policy meeting.
Crude oil futures moved higher on Tuesday on OPEC's optimism for greater compliance with its deal with other producers including Russia to curb output in an effort to clear a glut that has weighed on the market. OPEC Secretary General Mohammad Barkindo told an industry conference in London that 'We are going to go for much higher levels of compliance because of the very high level of stocks that we have brought over with us from 2016.' Though, Barkindo said it was too early to say if the supply cut, which lasts for six months from Jan. 1, would need to be extended or deepened at the next OPEC meeting in May.
Copper futures ended higher on Tuesday, driven by the prospect of major supply disruptions in Chile and Indonesia. In Chile, a government-mediated meeting between BHP Billiton and striking workers at its Escondida copper mine has failed without any future talks planned. Meanwhile, US mining giant Freeport-McMoRan has warned it could take the Indonesian government to arbitration and seek damages over a contractual dispute that has halted operations at the world's second-biggest copper mine. However, the US dollar was on course for its steepest gain against the euro in more than a month following hawkish comments from Federal Reserve officials, capped some gains in copper prices.
Technical Levels
Gold
Support at 29050---28900 and Resistance at 29500
Trade in a range with levels only and wait for confirmation.
Silver
Support at 42400 and Resistance at 43150
Trend looks positive and could touch its resistance level of 43150. Break and sustain above 43150 will take it to 43600---43900+ and then to 44500+ mark.
Fresh selling can be initiated below 42400
Crude Oil
Support at 3600---3570 and Resistance at 3700
The trend looks positive and could touch its resistance level of 3700. Break and sustain above 3700 will take it to 3780---3850+ mark in days to come else could touch its support level of 3600---3570 again.
Trade with levels only.
Copper
Support at 396 and resistance at 406.
Looks weak and could touch its support level of 396. Close below 396 will take to 391---386 mark else could touch its resistance level of 406.
Fresh buying can be initiated above 406
Major economic data
08:30 P.M Existing Home Sales: Previous 5.55M Forecast 5.49M Actual –??
Impact – Increase in Existing Home Sales – will have the negative impact on bullion and positive impact on base metals and dollar index or vice – Versa.
More will update soon!!
