Gold futures ended lower on Tuesday as the dollar rose following hawkish comments from an influential US Federal Reserve official and dovish remarks from the Bank of England governor. New York Fed President William Dudley said on Monday that labor market tightness should help drive up inflation, reinforcing the message that recent weak data was unlikely to derail plans to keep raising interest rates.
Crude oil futures slumped to a seven-month low on Tuesday ahead of inventory data, and amid reports that Nigeria and Libya are ramping up production. The two most vulnerable OPEC nations are exempt from the cartel's supply quota deal with Russia. Libya is currently producing 902,000 barrels a day. It’s the North African country’s highest output in four years. Sentiment on oil remained negative for the second-consecutive session, as investors continued to doubt Opec and its allies’ efforts to rebalance supply and demand in the market in the wake of rising global output.
Copper futures ended lower on Tuesday as the US dollar was firmer after comments by a Federal Reserve official that boosted confidence in another US interest rate rise this year.
Technical Level
Gold
Support at 28500 and Resistance 28650
Close below 28500 will take it to 28250---28080 mark else could touch its resistance level of 28650.
Fresh buying can be initiated above 28650
Silver
Support at 38000 and Resistance at 38450
Close below 38000 will take it to 37700---37400 and then to 36800 mark else could touch its resistance level of 38450 mark.
Fresh buying can be initiated above 38450 mark.
Crude (July)
Support at 2780 and Resistance at 2830
Close below 2780 will take it to 2730---2690 markelse could touch its resistance level of 2830.
Fresh buying can be initiated above 2830
Natural Gas
Support at 186.00 and Resistance at 190
Close below 186.00 will take it to 182---178 mark else could touch its resistance level of 190 again
Fresh buying can be initiated above 190 mark.
Copper
Support at 361 and Resistance at 368
Trading in range either side breakout with volumes will decide further.
Economic Data
07:30 P.M Existing Home Sales Home Sales m/m: Previous 5.75M, Forecast 5.54M, 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 -1.7M, Forecast -1.2M, Actual –??
Impact – Increase Crude Oil Inventories – will have negative impact on crude oil prices vice versa.
More will update soon!!
