Gold futures ended higher on Monday as worries about the political landscape in the United States and Europe, and a subdued dollar, reinforced investor interest. Political uncertainty in the United States has been fueled by President Donald Trump's policies, the most controversial of which is a temporary ban on entry by people from seven mostly Muslim countries. A US judge put a nationwide block on Trump's order on Friday.
Crude oil futures made a soft start of the new week and declined on Monday despite a weaker dollar and tensions between the US and Iran, as traders become nervous about the outlook for demand. The Trump administration's new sanctions against Iran, though not affecting oil output, raised concern about the potential for further developments that could hinder export growth in OPEC's third-largest producer.
Copper futures ended higher on Monday as investors' focus returned to supply risks in Chile and Indonesia. Workers at BHP Billiton's Escondida copper mine in Chile, the world's biggest, prepared to re-enter dialogue with the company on Friday after BHP asked for government mediation to try to avoid a strike. Meanwhile, the world's biggest publicly listed copper miner Freeport-McMoRan Inc said it would cut staff, spending and production in Indonesia if it did not get a new export permit by mid-February. Though, gains were capped by last week's surprise economic policy tightening in the world’s top consumer China.
Technical Level
Gold
Support at 28900 and resistance at 29400
If unable to breach its resistance level of 29400 then we can see sharp downside move till 29050—28900.
Be cautious at upper levels and trade with levels only
Silver
Support at 42000 and Resistance at 42500
Close above 42500 will take it to 42800---43200 mark else could touch its support level of 42000 again.
Fresh selling can be initiated below 42000 mark
Crude oil
Support at 3540 and Resistance at 3600---3680
Close below 3540 will take it to 3500---3480 and then to 3420 mark else it could touch its resistance level of 3600---3680 again.
Fresh buying can be initiated above 3680
Copper
Support at 386 and resistance at 393—397
Close below 386 will take it to take it to 381---378 and then to 370 mark else it could touch its resistance level of 393---397 again.
Fresh buying can be initiated above 397 mark.
Major Economic Data
08:30 P.M – JOLTS Job Openings – Previous 5.52M Forecast 5.56M Actual –??
Impact – Increase in JOLTS Job Openings – will have negative impact bullion and positive impact on base metals and dollar index vice – versa.
More will update soon!!
