Gold futures edged lower on MCX as speculators exited their positions in the precious metal on diminishing safe-haven demand due to an uptick in the US dollar ahead of a two-day US Federal Reserve meeting where the central bank is widely expect to raise interest rates. The chances of raising interest rate by the US Fed are higher when the meeting concludes on Wednesday led by signs of an uptick in inflation and continued strength in the US jobs market.
Crude oil futures continued their declining trend for the sixth straight session on Monday, as the rising US crude inventories continued to weigh on oil prices, and investors feared the supply glut in US inventories could hamper OPEC’s efforts to rebalance supply and demand. The EIA has recently reported domestic oil stockpiles have surged to their highest ever. Meanwhile, the oil services firm Baker Hughes reported that US oil rig count rose for an eighth straight week to the highest level since 2015. U.S. rig count rose by 8 to 617.
Copper futures ended higher on Monday as traders refocused on supply disruptions at mines in Chile and Indonesia. Over the weekend, the union at Chile’s Escondida, the world’s largest copper mine, rejected efforts by BHP Billiton, the majority-owner of the mine, to restart talks. The strike has now been running for more than a month. A strike at the Cerro Verde mine in Peru, which is owned by Freeport-McMoRan, began. A dispute over the terms of an export license for Freeport’s Grasberg mine in Indonesia also continues to drag on. Copper prices improved further as the dollar weakened against a basket of the other major currencies ahead of the outcome of this week’s Federal Reserve meeting, which is expected to result in the first of a series of rate hikes this year.
Technical Level
Gold
Support at 28050 and Resistance 28300
Gold looks weak and could touch its support level of 28050, further downside panic will see below 28050 else could touch its resistance level of 28300 again.
Fresh buying can be initiated above 28300
Trade with levels only
Silver
Support at 40200 and Resistance 40700
Break and sustain below 40200 will take it to 39800---39500 mark else it could touch its resistance level of 40700 again.
Fresh buying can be initiated above 40700 mark
Crude Oil
Support at 3185 and Resistance 3260
Break and sustain below 3185 will take it to 3130---3080 and then to 3030 mark else could touch its resistance level of 3260 again.
Trade with levels only
Natural Gas
Support at 197 and Resistance at 203.50
Break and sustain above 203.50 will take it to 208---212+++ mark else could touch its support level of 197 again.
Fresh selling can be initiated below 197.00 on closing basis.
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
07:00 P.M PPI m/m: Previous 0.6%, Forecast 0.1%, Actual –??
Impact – Increase in PPI - will have negative impact bullion and positive impact on base metals and dollar index vice – versa.
07:00 P.M Core PPI m/m: Previous 0.4%, Forecast 0.2%, Actual –??
Impact – Increase in Core PPI - will have negative impact bullion and positive impact on base metals and dollar index vice – versa.
More will update soon!!
