Gold futures ended lower on Wednesday as the US dollar strengthened against a basket of major currencies, as solid data backed the expectation for more US interest rate increases in 2017. Reinforcing rate increase expectations, US consumer confidence index hit 125.6 in March, surpassing expectations for a reading of 114 and much higher than 116.1 in February
Crude oil futures surged on Wednesday, extending their gains for the second consecutive session, after the latest Energy Information Administration (EIA) report showed a smaller than expected rise in US crude stockpiles, while output disruptions in Libya continued to lift sentiment. For the week ending March 22, the EIA said that crude oil inventories rose by 0.867 million barrels compared to estimates of an increase of 1.357 million barrels. At the same time, gasoline inventories continued to fall, dropping another 3.7 million barrels in a sign of impending demand for crude oil in the coming weeks.
Comex copper futures ended marginally higher on Wednesday, while London copper prices too climbed further, buoyed by brighter data from the United States and expectations of seasonally improving second-quarter demand. Reports showing that US consumer confidence surged to a more than 16-year high in March amid growing labour market optimism while the goods trade deficit narrowed sharply in February, indicating the economy was regaining momentum after faltering at the start of the year.
Technical Level
Gold (June)
Support at 28770 and Resistance at 28900
Break and sustain below 28770 will take it to 28680—28560 else it could touch its resistance at 28900 again.
Fresh buying can be initiated above 28900 mark
Traders can trade in a range with strict stop loss and wot for confirmation
Silver
Support at 42000 and resistance at 42450
Break and sustain below 42000 will take it to 41600—41450 and then to 40800 mark else could touch its resistance level of 42450 again
Fresh buying can be initiated above 42450 only.
Crude Oil
Support at 3180 and Resistance 3250
If unable to breach its resistance level of 3250 then it can touch its support level of 3180 again.
Close above 3250 will take to 3320---3350 mark.
Trade with levels only as we will expect range bound trading in it
Copper
Support at 380 and Resistance at 386
Above 386 it can touch 390 –394 and then to 400+ mark else could touch its support level of 378 again.
Fresh selling only below 378.
Trade with levels only.
Economic Data
06:00 P.M Final GDP q/q: Previous 1.9% Forecast 2.00% Actual –??
Impact – Increase in Final GDP q/q– will have negative impact on bullion and positive impact on base metals and dollar index or vice – versa.
06:00 P.M Unemployment Claim: Previous 261K Forecast 244K, Actual –??
Impact – Increase in Unemployment Claims – will have positive impact on bullion and negative impact on base metals and dollar index or vice – versa.
08:00 P.M Natural Gas Storage: Previous -150B, Forecast -37B, Actual –??
Impact – Increase Natural Gas Storage – will have negative impact on natural gas prices or vice versa.
More will update soon!!
