Gold futures ended higher on Thursday after the US Federal Reserve signaled a cautious stance on interest rate policy this year, pushing the dollar to its lowest in a month. The Fed on Wednesday raised interest rates for the second time in three months, with officials sticking to their outlook for two more rate hikes this year and three more in 2018. However, the defeat of right-wing nationalists in European elections and a significant rally in global stocks dented gold's safe haven appeal.
Crude oil futures just after a day of rally slipped back into red on Thursday, amid lingering doubts about OPEC's supply quota plan. High levels of U.S. crude inventories sparked doubts about the effectiveness of OPEC’s plan to drain the flood of oil that continues to suppress prices. OPEC's latest monthly report had revealed that Saudi Arabian crude oil production rose to 10.011 million barrels a day, up from 9.748 million in January, while the report also forecast a rise in production from non-OPEC members in 2017.
Copper futures ended higher on Thursday, supported by declining US dollar as traders shrugged off the Federal Reserve’s decision to hike rates and instead focused on the fact that the Fed is unlikely to accelerate its pace of future rate hikes. Further, continuing supply problems as stoppages at three of the world's biggest mines, too supported copper prices’ uptrend. Reports showing that roughly 200,000 tons of copper production has already been lost due to Industrial action at Chile's Escondida mine and Peru's Cerro Verde, along with a dispute over mining rights at Indonesia's Grasberg.
Technical Level
Gold
Support at 28380 and resistance at 28560
Weekly close below 28380 will take it to 28220---28050 and then to 27880 else could touch its resistance level of 28560 again.
Fresh buying can be initiated above 28560 mark.
Trade with levels only.
Silver
Support at 40500 and resistance at 41250
Break and sustain below 40500 will take it to 40200—40000 and then to 39800 mark else could touch its resistance level of 41250.
Further upside rally only above 41250
Crude Oil
Support at 3165 and Resistance 3220
Break and close above 3220 will take to 3250---3280 and then to 3320 mark
Else it could test it's support again. Further downside panic will see only close below 3165 mark
Trade with levels only
Copper
Hurdle at 391
Break and sustain above 391 will take it to 394---396 and then to 400++ mark else could touch its support level of 385.50
Looks weak below 385.50
Major Economic Data
06:45 P.M – Capacity Utilization Rate m/m – Previous 75.3% Forecast 75.5% Actual –??
Impact - Increase in Capacity Utilization Rate – will have negative impact bullion and positive impact on base metals and dollar index vice – versa.
06:45 P.M – Industrial Production m/m – Previous -0.3% Forecast 0.3% Actual –??
Impact – Increase in Industrial Production m/m– will have negative impact bullion and positive impact on base metals and dollar index vice – versa.
07.30 P.M – Prelim UoM Consumer Sentiment– Previous 96.3% Forecast 97.1% Actual –??
Impact – Increase in Industrial Production m/m– will have negative impact bullion and positive impact on base metals and dollar index vice – versa.
