Gold futures ended lower on Tuesday as an expected US interest rate hike boosted the dollar and weighed on the precious metal, but political risks in Europe provided safe-haven support. Investors remained focused on the Federal Open Market Committee (FOMC) meeting, which commenced on Tuesday, and widely expect the FOMC to hike interest rates on Wednesday.
Crude oil futures slid further on Tuesday, as Saudi Arabia triggered doubts that OPEC is following through with its supply quota plan. Saudi Arabia pushed oil production back above 10 million barrels a day, which deepened fears of a global supply glut. On the same time, OPEC acknowledged growing US output and stubbornly high stockpiles kept price gains in check and contained prices within a tight range. The OPEC report revealed that output soared to 9 million barrels a day in February, up 430,000 barrels a day from September 2016.
Copper futures ended higher on Tuesday on the back of upbeat economic data from China and continued labour disruptions at the world's biggest copper mines in Chile and Indonesia. Reports from the Statistics Bureau of China showed that industrial production led by the steel industry jumped 6.3% in January and February of 2017. Fixed asset investment, a major driver of growth, increased by 8.9 percent year-on-year in the first two months, down from 10.2 percent in the same period last year. But it was the fastest pace since July. Real estate investment increased by 8.9 percent in the period, up from 3.0 percent in the first two months of last year. It beat market expectations against the backdrop of tightened regulations since October to combat speculation.
Technical Level
Gold
Support at 27900 and Resistance 28050
Break and sustain below 27900 we can see downside panic in it else could touch its resistance level of 28050 again.
Fresh buying can be initiated above 28050
Trade with levels only
Silver
Support at 39800 and Resistance 40350
Break and sustain below 39800 will take it to 39500---39300 mark else it could touch its resistance level of 40350 again.
Fresh buying can be initiated above 40350 mark
Crude Oil
Support at 3130 and Resistance 3230.
If unable to breach its resistance level of 3230 then it can touch its support level of 3130 again. Further downside panic will see below 3130
Copper
Support at 383 and Resistance at 388
Break and sustain below 383 will take it to 378---373 and then to 369 mark else could touch its resistance level of 388 again.
Fresh buying can be initiated above 388.00
Major Economic Data
06:00 P.M Core Retail Sales m/m: Previous 0.8%, Forecast 0.1%, Actual –??
Impact – Increase in Core retail sales - will have negative impact bullion and positive impact on base metals and dollar index vice – versa.
06:00 P.M Retail Sales m/m: Previous 0.4%, Forecast 0.2%, Actual –??
Impact – Increase in Retail sales - will have negative impact bullion and positive impact on base metals and dollar index vice – versa.
06:00 P.M Empire State Manufacturing Index: Forecast 18.7 Previous 15.3 Actual??
Impact – Increase in Empire State Manufacturing Index – will have negative impact on bullion and positive impact on base metals and dollar index or vice – versa.
06:00 P.M CPI: Previous 0.6% Forecast 0.0% Actual –??
Impact – Increase in CPI – will have negative impact bullion and positive impact on base metals and dollar index vice – versa.
06:00 P.M Core CPI: Previous 0.3% Forecast 0.2% Actual –??
Impact – Increase in Core CPI – will have negative impact bullion and positive impact on base metals and dollar index vice – versa.
08:00 P.M Crude Oil Inventories: Previous 8.2M, Forecast 3.3M, Actual –??
Impact – Increase Crude Oil Inventories – will have negative impact on crude oil prices vice versa.
11.30 P.M FOMC Economic Projections
11.30 P.M FOMC Statement
11.30 P.M Federal Funds Rate
