Gold futures ended lower on Tuesday as the Federal Reserve was widely expected to wrap up its two-day meeting Wednesday with an increase to interest rates, which typically act as a headwind to prices for the yellow metal.
Crude oil futures traded marginally lower on MCX as investors and speculators exited their positions in the energy commodity after build in US crude stocks and also OPEC reported a surge in its output despite its pledge to cut back. An ongoing rise in US production driven by shale drillers, which has pushed US output up by 10 percent over the last year to 9.3 million bpd, not far off top exporter Saudi Arabia, too added pressure on crude oil prices.
Copper futures traded down on MCX as investors exited their positions in the industrial metal ahead of the outcome of a US Fed’s policy meeting later in the day, which could provide further clues over the timing of interest rate hikes this year. Further, the central bank is widely expected to raise interest rates at its two-day meeting. Meanwhile, the focus will be on any fresh hints on the pace of further tightening in the months to come and next year, and any further details on its plans for trimming its balance sheet.
Technical Level
Gold
Support at 28800 and Resistance 29050---29200
Trade in a range with levels only and wait for confirmation.
Silver
Support at 38600 and Resistance at 39200
Trend looks weak and could touch its support level of 38600. Break and sustain below 38600 will take it to 38450---38200 mark else could touch its resistance level of 39200 mark.
Fresh buying can be initiated above 39200 mark.
Crude
Support at 2910 and Resistance at 3015
Trading in range either side breakout with volumes will decide further.
Natural Gas
Below 191.50 panic remain continue till 187—185 and then to 183 mark.
Hurdle intact at 193.50
Copper
Close below 367 will take it 363---360 and then to 356 mark
Hurdle at 372
Economic Data
06:00 P.M CPI m/m: Previous 0.2%, Forecast 0.2%, Actual –??
Impact – Increase in CPI m/m - will have negative impact bullion and positive impact on base metals and dollar index vice – versa.
06:00 P.M Core CPI m/m: Previous 0.1%, Forecast 0.2%, Actual –??
Impact – Increase in Core CPI m/m - will have negative impact bullion and positive impact on base metals and dollar index vice – versa.
06:00 P.M Core Retail Sales m/m: Previous 0.3%, Forecast 0.2%, Actual –??
Impact – Increase in Core retail sales - will have negative impact bullion and positive impact on base metals and dollar index vice – versa.
06:00 P.M Retail Sales m/m: Previous 0.4%, Forecast 0.1%, Actual –??
Impact – Increase in Retail sales - will have negative impact bullion and positive impact on base metals and dollar index vice – versa.
08:00 P.M Crude Oil Inventories: Previous 3.3M, Forecast -2.3M, Actual –??
Impact – Increase Crude Oil Inventories – will have negative impact on crude oil prices vice versa.
More will update soon!!
