Gold futures ended higher on Tuesday as geopolitical uncertainty kept prices near their highest settlement level in about three months. Though, some gains were capped as the dollar strengthened against a basket of major currencies as the euro fell on weak German industry data and nervousness ahead of the French elections. Weaker output in manufacturing and construction drove the biggest monthly drop in German industrial production in nearly eight years in December.
Crude oil futures slumped on Tuesday, slipping to their 3 week low, amid signs that robust U.S. shale production will help offset OPEC's supply cuts. Evidence of a burgeoning revival in US shale production could complicate efforts by OPEC and other producers to reduce a supply glut. Traders were eyeing the inventory data with expectation that US crude stockpiles rose 2.5 million barrels last week - a fifth straight weekly build - while gasoline inventories grew 1.1 million barrels - a sixth consecutive weekly build. US supplies have been building in 2017 amid increased production and subdued demand, while ten OPEC members have achieved 91 percent of their required cuts in January.
Copper futures ended lower on Tuesday as the dollar strengthened against a basket of major currencies and on worries about demand growth in the world’s top consumer China. Traders are particularly worrying in the context of the Chinese yuan, which has been falling since the start of the year, as China accounts for about half of global demand for industrial metals. However, the prospect of supply disruptions at the world’s two biggest copper mines helped limit losses.
Technical Level
Gold
Support at 29150 and resistance at 29420---296
00.
Traders can trade in a range with strict stop loss and wait for confirmation.
Silver
Support at 42000 and Resistance at 42600
Close above 42600 will take it to 43000---43300 mark else
could touch its support level of 42000 again.
Fresh selling can be initiated below 42000 mark
Crude oil
Support at 3430 and Resistance at 3540---3600.
Looks weak and could touch its support level of 3430. Break and close below 3430 will take it to 3350—3280 else could touch its resistance level of 3540—3600 again.
Trade with levels only.
Copper
Support at 394 and resistance at 401
Break and sustain below 394 will take it to 389---386 mark else could touch its resistance level of 401 again.
Fresh buying can be initiated above 401 mark.
Major Economic Data
09:30 P.M Crude Oil Inventories: Previous 6.5M, Forecast 2.7M, Actual –??
Impact – Increase Crude Oil Inventories – will have negative impact on crude oil prices vice versa.
More will update soon!!
