Gold futures edged slightly higher after US Federal Reserve Chair Janet Yellen stated that, the central bank would only gradually tighten monetary policy, curbing speculation that interest rates would rise more than once this year. The US economy is expected to continue to expand at a moderate pace although uncertainty persists about low inflation and fiscal and government policies. As a result, the Fed is likely to start reducing its balance sheet this year and only gradually hike funds rate. China's trade surplus fell to USD 42.77 billion in June of 2017 from USD 45.16 billion a year earlier while market expected a USD 42.44 billion surplus, as exports rose less than imports. Foreign direct investment into China declined by 0.1 % year-on-year in the first half of 2017 to 441.54 CNY billion, following a 0.7 % fall during the January to May period.
Crude oil prices gained over night around 1% after the EIA official data reported a decline in the inventory levels marked highest since September last year. U.S. crude oil inventories last week dropped the most in ten months, falling more than expected as imports declined and refining rates rose, while gasoline stocks decreased although demand remained lacklustre. Separately, oil prices dipped today as producer club OPEC said it expected demand for its crude to decline next year as rivals pump more, pointing to a market surplus in 2018 despite efforts to tighten supply. A drawdown in U.S. fuel inventories and strong demand from China prevented prices from falling further.
Copper futures traded higher as speculators enlarged positions, on pick-up in demand from consuming industries at the domestic spot market. Further, metal's strength at the London Metal Exchange (LME) also added support to copper prices’ uptrend. Prices traded positively after comments by Janet Yellen in her testimony that the rate hikes could be gradual in case of a persistent weak inflation although she highlighted the strengths of the US economy. Besides, supply disruption woes rose after talks between the company and workers at the Zaldivar copper mine in Chile, owned by Antofagasta and Barrick Gold failed. US Dollar came under severe pressure earlier the day after release of emails by the US president’s son that said the Russian government backed his father’s presidential campaign.
Technical Level
Gold
Support at 27750---27600 and resistance at 28050.
Trade in a range with levels only and wait for confirmation.
Silver
Support at 36550 and Resistance at 37150
Break and sustain above 37150 will take it to 37500—37750 mark else could touch its support level of 36550.
Fresh selling can be initiated below 36550 mark.
Crude
Support at 2880 and Resistance at 2980.
Trading near support .Fresh buy position can be accumulate near support of 2880 for the upside target of 2970---3020 mark
Fresh selling can be initiated below 2880.
Trade with levels only.
Natural Gas
Support 193 and Resistance 198.50
Panic remain continue below 193 and could touch 189---187 mark, else could touch its resistance level of 198.50.
Fresh buying can be initiated above 198.50.
Trade with levels only.
Copper
Support at 380 and Resistance 386
Looks positive and could touch its resistance level of 386. Further upside rally will see on close above 386 else could touch its support level of 380.00 again.
Fresh selling can be initiated above 380.00 only.
Economic Data for Today
06:00 PM: US Unemployment Claim: Expected 245K, Previous 248K, Actual-??
(Impact: Actual < Forecast = Good for currency)
06:00 P.M: US Core PPI m\m: Expected 0.2%, Previous 0.3%, Actual -??
(Impact: Actual > Forecast = Good for currency)
More will update soon!!
