Gold futures ended higher on Wednesday as political risks posed by elections in Europe and worries over US President Donald Trump's policies stoked safe haven demand. Meanwhile, it appears the Federal Reserve will keep interest rates on hold until Trump offers more specifics on his plan to cut taxes and spend on infrastructure.
Crude oil futures ended modestly higher despite data on crude oil inventories from the Energy Information Administration (EIA) showing a massive build and the third straight weekly increase. EIA reported that crude oil inventories in the U.S. jumped by 13.5 million barrels at the end of last week. However, gasoline stockpiles unexpectedly fell, signalling that demand for crude oil will rise in the coming weeks. Gasoline stocks fell 869,000 barrels and crude stocks at the Cushing, Oklahoma, and delivery hub for US crude futures rose 1.1 million barrels.
Copper futures ended higher on Wednesday, boosted by supply concerns after miner BHP Billiton said it would halt output at the world´s biggest copper mine during a strike set to begin this week. Meanwhile, Freeport-McMoRan warned it would scale back activities at its Grasberg copper mine in Indonesia due to labour unrest. The company has also said it would cut production if it did not receive a new export permit by mid-February.
Technical Level
Gold
Support at 29240 and resistance at 29420---29600.
Traders can trade in a range with strict stop loss and wait for confirmation.
Trade with levels only
Silver
Support at 42000 and Resistance at 42600
Close above 42600 will take it to 43300---43800+++ mark else could touch its support level of 42000 again.
Fresh selling can be initiated below 42000 mark
Crude oil
Crude unable to breach its support level of 3430 and bounced back sharply. We recommended buying arund 3500---3480 mark.
Now what to expect??
Support at 3480---3430 and Resistance at 3600
Looks positive and could touch its resistance level of 3600. Weekly close above 3600 see further upside rally in it else it could touch its support level of 3480---3430 again.
Looks weak only below 3430 mark.
Traders can buy and accumulate Crude oil in panic around 3480 with strict stop loss below 3430 mark.
Copper
Below 394... Panic remain continue till 389---386.
Fresh buying can be initiated only close above 401 mark.
Major Economic Data
07:00 P.M Unemployment Claims: Previous 246k Forecast 249k, Actual –??
Impact – Increase in Unemployment Claims – will have positive impact on bullion and negative impact on base metals and dollar index or vice – versa.
09:30 P.M Natural Gas Storage: Previous -87B, Forecast -155B, Actual –??
Impact – Increase Natural Gas Storage – will have negative impact on natural gas prices or vice versa.
More will update soon!!
