Gold futures ended higher on Thursday after the Federal Reserve’s May meeting minutes, raised concerns over whether the Federal Reserve would continue with its plan to introduce two additional rate hikes in 2017. Though, some gains were capped as the dollar strengthened against a basket of major currencies and the world stock markets scaled fresh highs.
Crude oil futures slumped on Thursday despite news that OPEC has agreed to extend its supply quota plan. OPEC agreed to keep its own cuts of around 1.2 million barrels per day in place for nine months. However, Nigeria and Libya will remain exempt from making cuts. The OPEC’s plan failed to meet traders’ expectations that the cartel group would announce deeper cuts. The nine-month extension was widely anticipated but traders were hopeful that OPEC would take a more aggressive approach to curb oversupply with deeper cuts, in the wake of a rise in non-OPEC output. OPEC also announced that no new non-OPEC members will join the global deal to reduce supply and it would adhere to the production cuts of 1.8 million barrels a day agreed in late November.
Comex copper futures ended higher on Thursday, while London copper prices too rose as worries about prolonged disruptions at the giant Grasberg copper mine in Indonesia triggered short-covering before a long holiday weekend in Europe and top consumer China.
Technical Level
Gold
Support at 28500---28600 and Resistance at 28900
Trading in range 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 positive and could touch its resistance level of 40300 mark. Weekly close above 40300 will take it to 40700---41000 and then to 41500+++ mark else could touch its support level of 39350 again.
Fresh selling can be initiated below 39350 mark.
Crude
Support at 3130 and Resistance at 3230
Break and sustain below 3130 will take it to 3080---3030 mark in days to come else could touch its resistance level of 3230 again.
Fresh buying can be initiated above 3230 mark.
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 Core Durable Goods Orders m/m: Previous 0.0%, Forecast 0.4%, Actual –??
Impact – Increase in Core Durable Goods Orders m/m - will have negative impact bullion and positive impact on base metals and dollar index vice – versa.
07:00 P.M Prelim GDP q/q: Previous 0.7% Forecast 0.9% Actual –??
Impact – Increase in Prelim GDP q/q – will have negative impact on bullion and positive impact on base metals and dollar index or vice – versa.
06:00 P.M Durable Goods Orders m/m: Previous 0.9%, Forecast -1.4%, Actual –??
Impact – Increase in Durable Goods Orders m/m - will have negative impact bullion and positive impact on base metals and dollar index vice – versa.
07:00 P.M Revised UoM Consumer Sentiment: Previous 97.7 Forecast 97.6 Actual –??
Impact – Revised UoM Consumer Sentiment – will have negative impact on bullion and positive impact on base metals and dollar index or vice – versa.
Day 1 : G7 Meetings
More will update soon!!
