Gold futures ended higher on Wednesday as political turmoil in the United States reduced expectations of aggressive interest rate rise this year, pushing down US bond yields and drove the dollar to its lowest in six months.
Crude oil futures surged on Wednesday to hit three weeks high after the U.S. Energy Information Administration data confirmed a surprising drop in U.S. oil stockpiles. As per EIA domestic crude supplies fell by 1.8 million barrels for the week ended May 12. That's the sixth straight weekly decline. Meanwhile, gasoline inventories dropped by only 0.413 million, while distillate stockpiles fell by 1.94 million barrels. A report from the International Energy Agency (IEA), however, warned that OPEC’s effort to rein in the glut in supply may fail even if the oil group agrees to extend its supply-cut agreement.
Comex copper futures ended lower on Wednesday, while London copper prices too fell after reports showed that LME inventories have climbed by a third since late April, they added another 17,100 tonnes to 339,600 tonnes on Wednesday.
Technical Level
Gold
Support at 28500 and Resistance at 29000---29300
Looks positive can could touch its resistance level of 29000 mark. Further upside rally will see if closes above 29200---29300 else could touch its support level of 28500 again.
Fresh selling can be initiated below 28500
Silver
Support at 38600 and Resistance at 39400—39650
Looks positive and could touch its resistance level of 39400—39650, further upside rally will see only above 39650 mark else could touch its support level of 38600 mark again.
Fresh selling can be initiated below 38700.
Crude
Support at 3080 and Resistance at 3180
Break and sustain below 3080 will take it to 3030—3000 and then to 2970 mark in days to come, else could touch its resistance level of 3180 again.
Fresh buying can be initiated above 3180
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 Unemployment Claim: Previous 236K Forecast 240K, Actual –??
Impact – Increase in Unemployment Claims – will have positive impact on bullion and negative impact on base metals and dollar index or vice – versa.
06:00 P.M Philly Fed Manufacturing Index: Previous 22.00 Forecast 19.9 Actual –??
Impact – Increase in Manufacturing Index – will have negative impact on bullion and positive impact on base metals and dollar index or vice – versa.
08:00 P.M Natural Gas Storage: Previous 45B, Forecast 61B, Actual –??
Impact – Increase Natural Gas Storage – will have negative impact on natural gas prices or vice versa.
10:30 PM ECB President Draghi Speaks
More will update soon!!
