Gold futures ended lower on Wednesday pressured by a sharp rise in the dollar as investors continued to flee safe-haven assets amid a decline in geopolitical uncertainty. Yellow metal prices further declined as data showed US inflation remains tame. According to a report released by the Labor Department, producer prices in the US rose by slightly less than expected in the month of August. The Labor Department said its producer price index for final demand edged up by 0.2 percent in August after slipping by 0.1 percent in July. The increase in producer prices was partly due to a jump in energy prices, which surged up by 3.3 percent in August after falling by 0.3 percent in the previous month. Prices for gasoline spiked by 2.9 percent.
Crude oil futures continued its northward journey to hit monthly highs on Wednesday after government data showed a massive drop in gasoline stockpiles. Demand for crude oil is likely to rise in the coming weeks, as refineries are looking to cover-up the shortfall caused by Hurricanes Harvey and Irma. Meanwhile, Crude inventories rose 5.9 million barrels, compared with analysts’ expectations for an increase of 3 million barrels. However, gasoline stocks fell 8.4 million barrels, the largest draw on record. Oil prices were also lifted with world’s energy watchdog saying that global oil supplies fell in August for the first time in four months. Global output was down by 720,000 barrels a day last month from July, to 97.7 million barrels a day.
Comex copper futures ended lower on Wednesday, while London copper prices too fell to three-week lows driven by profit-taking, rising stocks in London Metal Exchange warehouses, nervousness about demand in China and a higher dollar.
Technical Level
Gold
Support at 29750 and Resistance 30050
Break and sustain below 29750 will take it to 29600—29450 mark else it could touch its resistance level of 30050 mark.
Fresh buying can be initiated above 30100
Silver
Support at 40800 and Resistance 41250
Break and sustain below 40800 will take it to 40300—40000 mark else could touch its resistance level of 41250 mark.
Fresh buying can be initiated above 41250 mark.
Crude
Support at 3130 and Resistance at 3200
Above 3200 rally remain continue till 3240—3280+++ mark else could touch its support level of 3130
Fresh selling can be initiated below 3130
Natural Gas
Hurdle at 198.00, Above 198 rally remain continue till 203---205++ mark.
Fresh selling can be initiated below 192.00
Economic Data
06:00 P.M CPI m/m: Previous 0.1%, Expected 0.3%, Actual??
Increase in CPI m/m – will have negative impact on bullion and positive impact on dollar Index or vice versa.
06:00 P.M Core CPI m/m: Previous 0.1%, Expected 0.2%, Actual??
Increase in Core CPI m/m – will have negative impact on bullion and positive impact on dollar Index or vice versa.
06:00 P.M Unemployment Claims: Previous 298K, Expected 303K, Actual??
Increase in Unemployment claim – will have negative impact on dollar index and positive impact on bullion or vice versa.
08:00 P.M Natural Gas Storage: Previous 65B, Expected 80B, Actual??
Increase in Natural Gas Storage – will have negative on natural gas prices or vice versa.
More will update soon!!
