Gold futures ended lower on Thursday as investors looked ahead to upcoming US nonfarm payrolls data for fresh clues on the timing of the Fed's balance sheet reduction and its ability to raise interest rates again this year. The Commerce Department revealed a report showing that new orders for U.S. manufactured goods saw a substantial increase in the month of June. The Commerce Department said factory orders jumped by 3.0 percent in June after dipping by a revised 0.3 percent in May. Meanwhile, the Institute for Supply Management (ISM) also released a report showing that the activity in the US service sector grew at a notably slower rate in the month of July. The ISM said its non-manufacturing index dropped to 53.9 in July from 57.4 in June, although a reading above 50 still indicates growth in the service sector.
Crude oil futures declined on Thursday, failing to hold $50 a barrel mark after jumping to 8-week highs. Traders looked ahead to an OPEC meeting next week for fresh insight into the oil cartel’s commitment to improve compliance with the deal to curb production, traders, however downplayed the importance of the meeting next week, suggesting oil prices may struggle to sustained upward momentum.
Comex copper futures ended marginally lower on Thursday, while London copper prices settled unchanged and held near two-year highs due to expectations of stronger demand from world’s top consumer China and a weak dollar. Reports showed that growth in China's services sector slowed in July, but data earlier showed manufacturing grew strongly, underpinning demand for metals.
Technical Level
Gold
Support at 28350 and Resistance at 28620
Break and sustain above 28620 will take to 28730---28850 mark else could touch its support level of 28350.
Fresh selling can be initiated below 28350.
Silver
Support at 37700 and Resistance at 38300
Break and sustain above 38300 will take it to 38600—38850 and then to 39000 mark else could touch its support level of 37700 again.
Fresh selling will do only close below 37500
Crude
Support at 3080 and Resistance at 3145
Break and sustain below 3080 will take it to 3030—2980 mark else could touch its resistance level of 3145 mark.
Fresh buying can be initiated above 3145 only.
Natural Gas
Support 178 and Resistance 183
Break and sustain below 178.00 will take it to 175—173 else could touch its resistance level of 183 again.
Fresh buying can be initiated above 183
Copper
Support at 403 and Resistance at 409---415
Trading in range either side breakout with volumes will decide further.
Economic Data
06:00 P.M Unemployment Rate: Previous 4.4% Forecast 4.3%, Actual –??
Impact – Increase in Unemployment Rate – will have positive impact on bullion and positive impact on base metals and dollar index or vice – versa.
06:00 P.M Non-Farm Employment Change: Previous 182K Forecast 222K, Actual –??
Impact – Increase Non-Farm Employment Change – will have negative impact on bullion and negative impact on base metals and dollar index or vice – versa.
06:00 P.M Average Hourly Earnings m/m: Previous 0.2% Forecast 0.3% Actual –??
Impact – Increase Average Hourly Earnings m/m – will have negative impact on bullion and negative impact on base metals and dollar index or vice – versa.
More will update soon!!
