Gold futures ended higher on Wednesday as an oil price slump pushed down stock markets and a weaker US dollar made bullion cheaper for holders of other currencies. The US Treasury yield curve was the flattest in nearly a decade as investors evaluated hawkish Federal Reserve policy and softening inflation.
Crude oil futures plummeted on Wednesday to their fresh seven month low, despite government data showing a drop in U.S. oil stockpiles. The Energy Information Administration (EIA) reported that crude inventories fell 2.5 million barrels in the week to June 16, below expectations of draw of about 2.1m barrels. Gasoline inventories fell by roughly 578,000 barrels, while distillate stockpiles rose by 1.1m barrels. EIA said that surging U.S. production has offset the supply quota plan from OPEC and Russia. Output jumped to 9.35 million bpd last week, up 20,000 bpd from the previous week.
Comex copper futures ended higher on Wednesday, while London copper prices too rose in response to a retreat in the US dollar from its recent peaks and evidence of tightening supply. The dollar dipped versus a currency basket after touching a five-week peak on Tuesday, with a slump in oil prices to seven- month lows calling into question the impact of inflation on the pace of future interest rate hikes.
Technical Level
Gold
Support at 28500 and Resistance 28730---28780
Trade in a range with levels only and wait for confirmation.
Silver
Support at 37700 and Resistance at 38450
Close above 38450 will take it to 38800---39000+ mark else could touch its support level of 37700 again
Fresh selling can be initiated below 37700 mark.
Crude
Support at 2730 and Resistance at 2800
Close below 2730 will take it to 2690—2630 mark else could touch its resistance level of 2800 again
Fresh buying can be initiated above 2800 mark
Trade with levels only
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 367 and Resistance at 376
Be cautious in copper at upper levels. We will expect correction panic from upper levels. For this we have to check weather it falls from 374 or 381 mark.
Trade safely...Any reversal seems will update
Economic Data
06:00 P.M Unemployment Claim: Previous 237K Forecast 241K, Actual –??
Impact – Increase in Unemployment Claims – will have positive impact on bullion and negative impact on base metals and dollar index or vice – versa.
08:00 P.M Natural Gas Storage: Previous 78B, Forecast 55B, Actual –??
Impact – Increase Natural Gas Storage – will have negative impact on natural gas prices or vice versa.
More will update soon!!
