Gold futures were trading higher on MCX on increased demand in the spot market mainly on account of ongoing marriage season. Besides, speculators created fresh positions driven by positive trend in the global markets on receding political risks in France and expectations of a U.S. rate rise as early as June 2017.
Crude oil futures suffered sharp slump on Thursday, just after a day of showing some recovery sign, as investors’ concerns about the glut in crude stockpiles heightened, ahead of the OPEC meeting on May 25. It was the worst daily drop for oil prices in 2017. There were reports that talks between rival Libya factions 'made some progress,' potentially ending supply interruptions from the North African nation. Libya's crude production rebounded to more than 700,000 barrels a day, it was recently reported. Oversupply jitters returned as producers, who are not part of the deal to curb supply, the US in particular, ramped up output, which has dampened OPEC’s effort to reduce global supply.
LME Copper prices plunged 1 percent yesterday to close at $5543/t as the Fed maintained status quo in the latest meeting but signalled that two more rate increases are likely this year. Also, recent steps by the Chinese government to cool the overheated property market are going to hurt base metals demand in the near term. Six major Chinese banks have raised interest rates on housing loans for first- and second-home buyers, effective from
May 1, in Beijing. Further, surge in LME inventories by more than 11 percent for the second after a whopping 12 percent jump on the prior day, added to the woes. Latest supply disruption concerns with the recent strike at the Grasberg mine in Indonesia could not support prices much.
Technical Level
Gold
Support at 28020---27900 and Resistance at 28250
Break and sustain below 28140 will take to 28080---28020 and then to 27900.
Fresh buying can be initiated on close above 28250 mark.
Silver
Support at 37800 and Resistance 38700
Close below 37800 will take to 37500—37300 and then to 36800 mark else it could touch its resistance level of 38700 mark again.
Fresh buying can be initiated above 38700 on closing basis
Crude
Support at 2830 and Resistance at 2960---3025.
We will expect range bound trading with high volatility. Trade safely
Copper
Support at 356 and Resistance at 365
Trend looks weak and could touch its support level of 356. Further downside panic will see on close below 356 else could touch its resistance level of 365 again.
Fresh buying can be initiated above 365
Economic Data
06:00 P.M Unemployment Rate: Previous 4.5% Forecast 4.6%, Actual –??
Impact – Increase in Unemployment Rate – will have positive impact on bullion and negative impact on base metals and dollar index or vice – versa.
06:00 P.M Unemployment Claim: Previous 357K Forecast 346K, 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 Average Hourly Earnings m/m: Previous 0.2% Forecast 0.3%, Actual –??
Impact – Increase in Average Hourly Earnings m/m – will have positive impact on bullion and negative impact on base metals and dollar index or vice – versa.
11:00 P.M Fed Chair Yellen Speaks
More will update soon!!
