Gold futures ended lower on Wednesday as encouraging economic data boosted risk appetite and fueled speculation that the Federal Reserve will again raise interest rates before summer. According to the report of payroll processor ADP, Employment in the US private sector increased by much more than anticipated in the month of March. ADP reported that private sector employment soared by 263,000 jobs in March compared to economist estimates for an increase of about 187,000 jobs. Meanwhile, the traders are now anticipating a strong US job report from the Labour Department on Friday.
Crude oil futures though managed a positive close on Wednesday but came sharply lower from the day’s high after a surprising build in U.S. oil inventories. A stronger dollar also weighed on commodities prices, as traders reacted to a very strong ADP private sector jobs report. Meanwhile, the Energy Information Administration (EIA) said inventories rose by 1.6 million barrels. Gasoline inventories fell by around 0.618 million barrels, while distillate stockpiles fell by 0.536 million barrels. The surprise build in U.S. crude stockpiles confounded expectations that U.S. demand for oil would start to pick up ahead of the ‘summer driving season’.
Copper futures traded down on MCX as speculators offloaded their bets, amid muted demand at the domestic spot markets. Moreover, weakness in select base metals at the London Metal Exchange (LME) too fueled the downtrend.
Technical Level
Gold (June)
Gold Support at 28700 and Resistance at 29000.
Break and sustain below 28700 will take it to 28550---28400 else could touch its resistance level of 29000 again.
Further upside rally will see only above 29000 mark
Silver
Support at 42175 and Resistance 42400
Below 42150 it can touch 41900—41500 and then to 41200 mark else couch its resistance level of 42400 again
Fresh buying can be initiated above 42850
Crude Oil
Support at 3300--3280 and Resistance 3370
Looks weak and could touch its support level of 3300—3280, further downside panic will see below 3280 mark, else could touch its resistance level of 3370.
Trade with levels only
Copper
Support at 376--373 and Resistance at 386--389
Trading in range either side breakout with volumes will decide further till then trades can trade in range with strict stop loss.
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