Update on Bullion, Base Metal and Energy Levels 08th November 2017
Market players are looking for more clarity on Trump’s tax plan, political development in Saudi Arabia and US stance on North Korea. As per latest reports, Senate Republican leaders are considering 1-year delay in corporate tax cut. Political uncertainty is high in Saudi Arabia post recent arrest of high profile individuals ordered by Crown Price Salman. US President Trump yesterday called on North Korea to come to the table and make a deal on its missile and nuclear program. He however maintained that US stands ready to use its full range of military capabilities if need be. ETF outflows show weaker investor interest in gold. Gold holdings with SPDR ETF fell to 844.273 tonnes, lowest since 18 Sept. We may see choppiness continuing in US dollar and equity market and this will keep gold in a broad range but we maintain our sell on rise view.
Crude oil futures cooled a bit on Tuesday ahead of the inventory data and after Opec said it expected a surge in North American shale output to cap demand for the cartel’s crude oil. Opec in its 2017 World Oil Outlook revised upwards North American shale oil to 5.1 million barrels per day (bpd) from 4.1 million bpd, citing the recent rally in crude prices as one of the catalysts to drive up shale output. The U.S. Energy Information Agency in separate report also revised upwards its estimate for domestic crude oil production.
Copper prices may come under pressure amid narrow deficit in physical market and more than 9% rise in production from Congo in first 9 months. The downside may however be capped amid continuing hopes of robust demand from top consumers - China and US despite spate of mixed data. Also capping the downside is choppiness in US Dollar.
Technical Level
Gold
Support at 29300 and Resistance at 29600
Break and sustain above 29420 will take it to 29600 and then to 29800—29900 mark in days to come else could touch its support level of 29300.
Fresh selling can be initiated below 29300
Silver
Support at 39600 and Resistance at 40050
Break and sustain above 40050 will take it to 40400-40650 and then to 40900++ mark else could touch support level of 39600.
Fresh selling can be initiated below 39600.
Crude
Support at 3680 and Resistance at 3750
Trend looks positive …..Break and sustain above 3750 will take it to 3800—3830++ mark else could touch its support level of 3680.
Fresh selling can be initiated below 3680 mark.
Natural Gas
Support at 201 and Resistance at 205
Break and sustain above 205 will take it to 208—212 and then to 215++ mark else could touch its support level of 201
Fresh selling can be initiated below 201
Copper
Support at 441.00 and Hurdle at 448.00
Break and sustain below 441.00 will take it to 435—432 mark else could touch its resistance level of 448.00
Fresh buying can be initiated above 448.00
Economic Data
08:30 P.M Crude Oil Inventories: Previous -2.4M, Expected -2.5M, Actual??
Increase in Crude Oil Inventories – will have negative on crude oil prices or vice versa.
More will update soon!!!
