Gold futures ended lower on Tuesday as the US dollar rebounded from 6-1/2-month lows and investors shrugged off heightened political risk following a deadly suicide attack in Britain. The blast at a concert hall in Manchester, which killed at least 22 people, prompted the US dollar to gain against sterling but failed to move gold higher. Meanwhile, the precious-metals market will also look for clues on the timing for US interest rate increases from the release Wednesday of minutes from the Federal Reserve’s early-May meeting.
Crude oil futures moved further high and reached a five-week high on Tuesday, ahead of US inventories data that may show stockpiles continued to dwindle from record levels. Traders overlooked the Goldman Sachs report downgrading the energy sector amid concerns that rig count growth will "flatten out" over the next few years. However, there was some concern too ahead of the Organization of the Petroleum and Exporting Countries meeting later this week. As, Kuwaiti Oil Minister Issam Almarzooq said some countries are not in favour of a nine-month extension, but there’s a preliminary agreement on a six-month deal that will be reviewed in November.
Copper futures ended flat on Tuesday, followed by reports that copper imports in China dropped 41 percent, partly due to tighter credit. Furthermore, a terrorist attack in the UK city of Manchester too reduced global risk appetite.
Technical Level
Gold
Support at 28500 and Resistance at 28900
Trend looks weak and could touch its support level of 28500, break and sustain below 28500 will take it to 28350---28200 mark in days to come else could touch its resistance level of 28900 again.
Fresh buying can be initiated on close above 28900.
Silver
Support at 39350 and Resistance at 40000
Break and sustain below 39350 will take it to 39000---38700 mark else could touch its resistance level of 40000 again.
Trade with levels only.
Crude
Support at 3330 and Resistance at 3380
Break and sustain below 3330 will take it to 3280---3250 and then to 3200 mark in days to come else could touch its resistance level of 3380 again.
Fresh buying can be initiated above 3380 mark.
Natural Gas
Support at 208 and Resistance at 215.50
Break and sustain below 208 will take it to 201—196 mark in days to come else could touch its resistance level of 215.50
Fresh buying can be initiated above 215.50
Copper
Support at 367 and Resistance at 375
Break and sustain below 367 will take it to 363—361 and then to 356 mark in days to come else could touch its resistance level of 375 again.
Fresh buying can be initiated above 375 only.
Economic Data
07:30 P.M Existing Home Sales Home Sales m/m: Previous 5.71M, Forecast 5.65M, Actual –??
Impact – Increase in Existing Home Sales Home Sales m/m - will have negative impact bullion and positive impact on base metals and dollar index vice – versa.
08:00 P.M Crude Oil Inventories: Previous -1.8M, Forecast -2.4M, Actual –??
Impact – Increase Crude Oil Inventories – will have negative impact on crude oil prices vice versa
11:30 P.M FOMC Meeting Minutes
More will update soon!!
