Gold futures ended lower on Monday as the dollar rebounded and 10-year US Treasury yields climbed, weighing on appetite for non-interest bearing bullion. The Institute for Supply Management revealed in a report that the activity in the US manufacturing sector grew at an accelerated rate in the month of June. The ISM showed its purchasing managers index climbed to 57.8 in June from 54.9 in May, with a reading above 50 indicating growth in the manufacturing sector. Economists had expected the index to inch up to 55.2.
Crude oil futures continued their upmove on for the eighth straight session, the longest such streak in months and ended up by over two percent on Monday, after data pointed to diminished U.S. output, though reports said news of rising OPEC production could cap gains. Meanwhile, traders continued getting support with report that the U.S. rig count fell last week for the first time in about five months, while US government data showed crude output fell in April for the first time this year.
Copper futures traded down on MCX as speculators offloaded their positions amid subdued demand at the domestic spot markets. Moreover, weak trend at the London Metal Exchange (LME) on rising stocks which have gained 14 per cent since Wednesday to hit 278,275 tonnes too fuelled the downtrend.
Technical Level
Gold
Support at 28050 and Resistance 28225
Break and sustain below 28050 will take it to 27900—27750 mark in days to come else could touch its resistance level of 28225 again.
Fresh buying can be initiated above 28225 mark.
Trade with levels only.
Silver
Support at 37600 and Resistance at 37900
Break and sustain below 37600 will take it to 37300—37050 mark else could touch its resistance level of 37900.
Further upside rally will see above 37900 mark.
Crude
Support at 3025 and Resistance at 3080
If unable to breach its resistance level then we can expect it to touch its support level of 3025 again.
Further downside panic will see below 3025 mark.
Natural Gas
Support 191.50 and Resistance 195
Break and sustain below 191.50 will take it to 189—187 and then to 185 mark else could touch its resistance level of 195.
Fresh buying can be initiated above 195
Economic Data
US Bank Holiday on account of independence day.
More will update soon!!
