Gold futures traded marginally lower on MCX as market players looked ahead to the outcome of the Federal Reserve's policy meeting for further clues on the timing of the next rate hike.
Crude oil futures extending their slump on Tuesday, reached to their lowest settlement since late November ahead of data on U.S. crude oil stockpiles. Expectations for a fourth-straight week of drawdowns in crude stockpiles come amid a bearish and bullish production update from both Libya and Russia, respectively. Worries over global supply glut resurfaced after Libya resumed output and country’s production rose above 760,000 bpd to the highest rate since 2014.
Copper futures ended lower on Tuesday as soft data out of China's manufacturing sector weighed on the price of red metal, sparking further selling across the mining sector. Official manufacturing data for April showed the weakest pace of growth in China’s factory sector in seven months while the Caixin Manufacturing Purchasing Manager’s Index, a privately-conducted gauge of China’s manufacturing sector, also came in at a worse-than-expected 50.3 in April, down from 51.7 in March.
Technical Level
Gold
Below 28600 panic remain continue till 28300---28150 and then to 27900 mark.
Hurdle intact at 28750---28900
Silver
Support at 38900 and Resistance 39500
Looks weak and could touch its support level of 38900. Close below 38900 will take it to 38500---38200 and then to 37800 mark in days else it could touch its resistance level of 39500 mark again
Fresh buying can be initiated above 39500 mark.
Crude
Support at 3050 and Resistance at 3130
Close below 3050 will take it to 3000---2980 and then to 2950 mark in days to come else could touch its resistance level of 3130 mark.
Further upside rally will see if closes above 3130
Copper
Our sell call in Copper proven great. Crashed from 373---366.60
Now what to expect???
Looks weak and could touch its support level of 365.
Close below 365 will take it to 361—356 mark in days to come else could touch its resistance level of 375 again.
Further upside rally will see only close above 375
Economic Data
05:45P.M ADP Non-Farm Employment Change: Previous 263K, Forecast 178k, Actual??
Impact - Increase in ADP Non-Farm Employment Change – will have negative impact on bullion and positive impact on base metals and dollar index or vice – versa.
07:30 P.M – ISM Non-Manufacturing PMI– Previous – 55.2 Forecast 56.1 Actual –??
Impact – Increase in ISM Non-Manufacturing PMI – will have negative impact bullion and positive impact on base metals and dollar index vice – versa.
08:00 P.M Crude Oil Inventories: Previous -3.6M, Forecast -3.3M, Actual –??
Impact – Increase Crude Oil Inventories – will have negative impact on crude oil prices vice versa
11:30 P.M FOMC Statement
11.30 P.M Federal Funds Rate
More will update soon!!
