Gold futures ended lower on Wednesday after minutes from the Federal Reserve’s May policy meeting appeared to show that the majority of the central bank’s officials remain resolute about hiking rates at their meeting in June, which is widely expected. Though, some losses were capped as the dollar slipped against a basket of major currencies.
Crude oil futures snapped their winning streak on Wednesday, despite word that OPEC will agree to extend its supply quota plan. Traders also overlooked the bullish report from the Energy Information Administration (EIA), showing U.S. crude inventories fell more than expected in the previous week. EIA said that crude oil inventories fell by 4.43 million barrels. Gasoline inventories dropped by only 0.485 million, while distillate stockpiles fell by 0.485 million barrels. Meanwhile, Kuwait, Iraq, Oman and Venezuela supported the Saudi-Russia agreement that production curbs needed to be extended for a period of nine-months until March 2018, to reduce global supply to the five-year average.
Copper futures traded lower on MCX as speculators trimmed positions amid muted demand at domestic spot markets. Further, weak trend in copper and other industrial metals in the global market after Moody’s Investors Service downgraded China’s credit rating and warned that the country’s debt position will worsen as its economic expansion slows too fuelled the downtrend.
Technical Level
Gold
Support at 28500 and Resistance at 28900
Trading in range and either side breakout with volumes will decide further till then traders can trade in range with strict stop loss.
Silver
Support at 39350 and Resistance at 40300
Looks weak and could touch its support level of 39350. Break and close 39350 will take it to 39000—38700 and then to 38300 mark else could touch its resistance level of 40300 mark again.
Fresh buying above 40300 mark.
Crude
Break and sustain below 3330... panic remain continue till will take it to 3230---3200 and then to 3180 mark in days to come
Be cautious at upper levels.
Natural Gas
Support at 205.50 and Resistance at 215.50
Break and sustain below 205.50 will take it to 199—196 and then to 190 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 367.50 and Resistance at 375
Break and sustain below 367.50 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
06:00 P.M Unemployment Claim: Previous 232K Forecast 238K, Actual –??
Impact – Increase in Unemployment Claims – will have positive impact on bullion and negative impact on base metals and dollar index or vice – versa.
07:30 PM FOMC Member Brainard Speaks
08:00 P.M Natural Gas Storage: Previous 68B, Forecast 72B, Actual –??
Impact – Increase Natural Gas Storage – will have negative impact on natural gas prices or vice versa.
More will update soon!!
