Gold futures declined on MCX as investors exited their positions in the precious metal on diminishing safe-haven demand due to an uptick in the US dollar ahead of the US non-farm payrolls data on Friday. Traders keenly eyed the February non-farm payrolls data due tomorrow as a barometer of the US economy after Fed Chair Yellen said last week that the central bank was poised to lift rates provided jobs and inflation data held up.
Crude oil futures edged lower on MCX as investors and speculators exited their positions in the energy commodity after US government data revealed a weekly jump in crude supplies that lifted total inventories to another record. Crude inventories in the United States, the world's top oil consumer, surged last week by 8.2 million barrels, handsomely beating forecasts of a 2 million barrel build. The plunge came even as representatives from the Organization of the Petroleum Exporting Countries (OPEC) this week touted high compliance among the output-cut agreement participants since the start of the year.
Copper futures ended lower on Wednesday to a one-month low on selling triggered by a higher dollar, lower imports of the metal by top consumer China and rising inventories. Growing expectations the US Federal Reserve will hike rates next week have boosted the US currency, which when it rises makes dollar-denominated metals more expensive for holders of other currencies. Copper imports to China totalled 340,000 tonnes in February, down 10.5 percent from January and down 19 percent from a year ago. Stocks of copper in LME approved warehouses at 288,525 tonnes have nearly doubled since last Thursday. However, mine disruptions in Chile, Peru and Indonesia are supporting prices.
Technical Level
Gold
Support at 28480 and Resistance 28550
Break and sustain below 28480 will take it to 28380---28330 and 28225 mark else could touch its resistance level of 28550 again.
Fresh buying can be initiated above 28550 mark
Trade with levels only.
Silver
Support at 41000 and then 41350.
Looks weak and could touch its support level of 41000. Break and sustain below 41000 will take it to 40700---40450 mark else could touch its resistance level of 41350 again
Fresh buying can be initiated above 41350 mark.
Crude Oil
Crude oil forming Wedge patter on daily chart.
Support at 3280.
Weekly close below 3280 will see more downside panic till 3120---3050 and then to 2800 mark.
Hurdle intact at 3350---3420.
Copper
Support at 378 and Resistance at 384
Break and sustain below 378 will take it to 373—369 and then to 365 mark.
Revise stop loss of 384
Trade with levels only
Major Economic Data
07:00 P.M Unemployment Claim: Previous 223K Forecast 239K, Actual –??
Impact – Increase in Unemployment Claims – will have positive impact on bullion and negative impact on base metals and dollar index or vice – versa.
09:00 P.M Natural Gas Storage: Previous 7B, Forecast -59B, Actual –??
Impact – Increase Natural Gas Storage – will have negative impact on natural gas prices or vice versa.
