Gold futures ended lower on Thursday as the dollar strengthened against a basket of major currencies and rising US rate hike expectations in March following buoyant US economic data and hawkish comments from Federal Reserve governors. Meanwhile, upbeat US jobless claims data heaped further pressure on gold prices, after the labour department released a report on Thursday, initial jobless claims fell by 19,000 to 223,000 for the week ended February 25. Analysts expected jobless claims to rise by 1,000 to 243,000 last week.
Crude oil futures slumped on Thursday with stronger dollar and surging U.S. inventories. The Energy Information Administration (EIA) reported that US crude oil inventories rose by 600,000 barrels to a record 518.7 MMbbls. Also, data from the EIA showed that domestic supplies of natural gas rose by 7 billion cubic feet for the week ended Feb. 24. Rising U.S. crude stockpiles added to oversupply concerns while Russia failed to initiate further production cuts in January.
Copper futures ended lower on Thursday after recent gains tempted investors to book profits. Further, the dollar strengthened and hit a fresh seven week high as several US Federal Reserve officials this week stoked the possibility of an interest rate hike later this month as the economy strengthens and it too added pressure on the metal prices. However, some losses were capped with an official gauge of manufacturing activity in China rose faster than expected last month, making for a strong start to 2017, as demand picked up and stimulus momentum continued. The disruption at Chile's Escondida copper mine, the world's biggest, turned violent on Wednesday when a group of striking workers blocked a highway, also limited losses.
Technical Level
Gold
Yesterday we clearly indicated gold looks weak below 29240…. It crashed and made low of 29026.
Now what to expect???
Gold has support at 28900 and resistance at 29240.
Weekly close is important for further clear direction. So trade in a range with levels only and wait for confirmation
Silver
We too recommended silver looks weak below 43700. Fell sharply and made low of 42383 mark.
Now what to expect??
Support at 42250---41800 and Resistance at 43000
Break and sustain below 42250 will take to 42000---41800 mark else it could touch its resistance level of 43000 again.
Looks positive only close below 43000 mark
Crude Oil
Support at 3520 and Resistance at 3570.
Close below 3520 will take it to 3480---3430 mark. Further downside panic will see close below 3430 else it could touch its resistance levels of 3570 again.
Trade with levels only.
Copper
Support at 396 and resistance at 402
Break and sustain below 396 will take it to 392---389---386 mark else could touch resistance level of 400 mark again.
Break and sustain above 400 will see more upside rally till 405---409 and then to 415 mark.
Trade with levels only
Major Economic Data
08:30 P.M – ISM Non-Manufacturing PMI– Previous – 56.5 Forecast 56.5 Actual –??
Impact – ISM Non-Manufacturing PMI – will have negative impact bullion and positive impact on base metals and dollar index vice – versa.
08:45 - FOMC Member Evans Speaks
10:45 - FOMC Member Powell Speaks
11.30 - Fed Chair Yellen Speaks
11:30 - FOMC Member Fischer Speaks
More will update soon!!
