Gold futures ended lower on Tuesday as data on retail sales and US manufacturing came in better than expected and easing geopolitical tensions between North Korea and the US undercut haven demand for the precious metal. The National Association of Home Builders released a report showing a rebound in confidence in the month of August. Their housing index jumped to 68 in August from 64 in July. Retail sales in the US increased by more than anticipated last month, up 0.6 percent in July after rising by a revised 0.3 percent in June. Investors await minutes from the Fed's July meeting to be released on Wednesday for clues on when a rate hike is next likely.
Crude oil futures turned lower on Tuesday, on data showing weaker-than-expected oil demand in China the world’s second-largest consumer, reducing the prospect of oil inventories falling below the five-year average. Meanwhile, an announcement by the Nigerian subsidiary of Royal Dutch Shell to lift a force majeure on Bonny Light crude exports, also added to oversupply jitters. Also, EIA had said it expected to see a climb in crude output from key U.S. shale regions of 117,000 barrels per day (bdp) in September to 6.149 million bpd.
Copper futures ended lower on Tuesday in reaction to weaker prices in London, a stronger US Dollar and a series of disappointing economic reports from China. Traders continued to digest the weak economic news from China which raised questions about future demand. China’s industrial output, investment, retail sales and trade all grew less than expected last month.
Technical Level
Gold
Gold unable to breach its resistance level of 29300 and crashed vertically.
Now what to expect??
Support at 28800 and Resistance at 29050
Close below 28800 will take it to 28600--28450 and then to 28300 mark else could touch its resistance level of 29050.
Fresh buying can be initiated above 29050.
Silver
Support at 38250 and Resistance 38800
Break and sustain below 38250 will take it to 37900—37600 and then to 37200 mark else could touch its resistance level of 38800 mark.
Trade with levels only.
Crude
Below 3080 panic remain continue till 3030—3000 and then to 2980 mark mark else could touch its resistance level of 3150 mark again.
Fresh buying can be initiated above 3150 mark.
Natural Gas
Below 186 panic remain continue till 183—182 and then to 179 mark.
Hurdle intact at 190
Economic Data
06:00 P.M Building Permits: Previous 1.28M, Expected 1.25M, Actual??
Increase in Building Permits – will have negative impact on bullion index and positive impact on dollar or vice versa.
06:00 P.M Housing Starts: Previous 1.28M, Expected 1.25M, Actual??
Increase in Building Permits – will have negative impact on bullion index and positive impact on dollar or vice versa.
08:00 P.M Crude Oil Inventories: Previous -6.5M, Expected -3.0M, Actual??
Increase in Crude Oil Inventories – will have negative on crude oil prices or vice versa.
11:30 P.M FOMC Meeting Minutes
More will update soon!!
