Gold futures ended higher on Monday as US political turmoil, a missile test by North Korea and a worldwide cyber-attack fuelled demand for safe-haven assets, while weaker than expected US data pushed the dollar lower, making gold cheaper for holders of other currencies.
Crude oil futures bounced back on Monday and surged by over 2 percent after Russia and Saudi Arabia vowed to do whatever it takes to re-balance oil markets. They said they would support an extension of the supply-cut agreement into March 2018. Russian President Vladimir Putin reportedly said that he met the managers of all the main oil and gas companies in the country, and the minister of energy, behind closed doors and we discussed the issue and we support this proposal. In November last year, OPEC and other producers, including Russia, agreed to cut output by about 1.8 million barrels per day (bpd). The deal to cut production expires in June this year but includes a possible six-month extension.
Copper futures ended higher on Monday amid improved sentiment over China's economy, despite recent disappointed data from the country as reports showed that Chinese industrial production and retail sales for April came in weaker than expected.
Technical Level
Gold
Support at 27900 and Resistance at 28250---28400
Trading in range either side breakout with volumes will decide further till then traders can trade in range with strict stop loss.
Silver
Hurdle at 39000. Break and sustain above 39000 will take it to 39400---39650 mark.
Support intact at 38400
Crude
Support at 3080 and Resistance at 3200.
Looks positive can could touch its resistance level of 3200. Break and close above 3200 will see further upside rally in it else it could test its support level of 3080 again.
Further downside panic will see on close below 3080 mark.
Natural Gas
Support at 213.00 and Resistance at 221.00
Break and sustain above 221.00 will take it to 226—230 ++ mark in days to come, else could touch its support level of 213.00 mark.
Fresh selling can be initiated below 213.00
Copper
Support at 356 and Resistance at 365
Trading in range either side breakout with volumes will decide further.
Economic Data
06:00 P.M Building Permits: Previous 1.27M Forecast 1.27M Actual –??
Impact – Increase in Building Permits – will have negative impact on bullion and positive impact on base metals and dollar index or vice – versa.
06:00 P.M Housing Starts: Previous 1.26M Forecast 1.22M, Actual –??
Impact – Increase in Housing Starts – will have negative impact bullion and positive impact on base metals and dollar index vice – versa.
06:45 P.M – Capacity Utilization Rate m/m – Previous 76.1% Forecast 76.3% Actual –??
Impact - Increase in Capacity Utilization Rate – will have negative impact bullion and positive impact on base metals and dollar index vice – versa.
06:45 P.M – Industrial Production m/m – Previous 0.5% Forecast 0.4% Actual –??
Impact – Increase in Industrial Production m/m– will have negative impact bullion and positive impact on base metals and dollar index vice – versa.
More will update soon!!
