Gold futures traded higher on MCX, bouncing off the prior session's eight-week low after US President Donald Trump abruptly fired FBI Director James Comey in a move that shocked Washington. Besides, Rekindled fears that North Korea could be gearing up for another weapons test also supported gold. However, expectations of a Federal Reserve rate hike next month limited the gains in gold futures.
Gold futures ended lower on Tuesday as safe-haven demand continued to fade in the wake of Emmanuel Macron's victory in the French election and as expectations for tighter US monetary policy lifted bond yields. Yellow metal prices further declined as the dollar strengthened against a basket of major currencies. Wholesale inventories in the US unexpectedly saw a modest increase in the month of March, according to a report released by the Commerce Department. The report showed that wholesale inventories rose by 0.2 percent in March after climbing by 0.3 percent in February. Inventories had been expected to edge down by 0.1 percent.
Comex copper futures ended marginally higher on Tuesday, while London copper prices too inched up after falling to a four-month low in the previous session due to data showing a sharp drop in imports of the metal by China, which consumes nearly half the world's copper. However, the US dollar rose versus a currency basket, with another US rate hike in June now almost certain and capped some gains.
Technical Level
Gold
Support at 27900 and Resistance at 28250---28400
Close below 27900 will take it to 27650—27400 mark else could touch its resistance level of 28250 again.
Be cautious at upper level. We will expect range bound trading with high volatility.
Silver
Support at 37800 and Resistance 38700
Trading in range either side breakout with volumes will decide further till then traders can trade in range with strict stop loss.
Crude
Support at 2950 and Resistance at 3025
Close above 3025 will take it to 3050—3080 and then to 3130++ mark in days to come else could touch its support level of 2950 mark again.
Below 2950 we can expect panic till 2900—2880 mark.
Copper
Support at 356 and Resistance at 363
Close below 356 will take it to 350---345 and then 335 mark in days to come else could touch its resistance level of 363
Fresh buying can be initiated above 363
Economic Data
05:30 P.M ECB President Draghi Speaks
08:00 P.M Crude Oil Inventories: Previous -0.9M, Forecast -2.0M, Actual –??
Impact – Increase Crude Oil Inventories – will have negative impact on crude oil prices vice versa
More will update soon!!
