Update on Bullion, Base Metal and Energy Levels 12th December 2017
Gold futures ended almost flat on Monday, after its biggest weekly drop in more than six months on Fed meeting overhaul. The yellow metal is highly sensitive to interest rates hikes, as these increase the cost of holding non-yielding bullion, while boosting the dollar, in which it is priced.
Crude oil futures continued their gaining streak to the new week and ended higher on Monday, amid supply disruptions after a major North Sea pipeline shut for repairs. The major pipeline crack in the UK's North Sea which carries 40% of North Sea oil and gas has caused Brent crude oil prices to spike fast than US oil, leading the Brent crude to reach its highest since 2015. Oil prices shrugged off somewhat bearish comments from UAE Energy Minister Suhail bin Mohammed al-Mazroui, who said OPEC and non-OPEC producers plan to announce in June an exit strategy from global supply cuts.
Copper futures ended higher on Monday. The gains came after the industrial metal fell sharply last week back below $3 and about 7% off its three-year highs from October on concerns that demand from China, the world's largest consumer, will slow moving forward. The dollar slipped against a trade-weighted basket of currencies on lackluster US wage data that could weigh on the pace of interest rate hikes from the Federal Reserve next year, supported copper prices uptrend.
Technical Level
Gold
Today we recommended selling in gold from 28350 mark…. It crashed vertically and made low of 28055.
Now what to expect??
Support at 28050, Break and sustain below 28050 will take it to take it to 27850—27600 mark.
Hurdle at 28400.
Silver
Support at 36850 and Resistance at 37200
Break and sustain below 36850 will take it to 36300--36000 mark in days to come else could touch its resistance level of 37200 again.
Fresh buying can be initiated above 37200
Crude
Support at 3730 and Resistance 3775
Break and sustain above 3775 will take it to 3830—3850++ mark else could touch its support level of 3730 mark.
Fresh selling can be initiated below 3730.
Natural Gas
Support at 178.50 and Resistance at 184.00
Break and sustain above 184.00 will take it to 190.00—192.00 mark in days to come else could touch its support level of 178.50
Fresh selling can be initiated below 178.50.
Copper
Support at 428 and Resistance at 433.00
Break and sustain above 433 will take it to 440—443++ mark else could touch its support level of 428.
Fresh selling can be initiated below 428.00
Economic Data
07:00 P.M PPI m/m: Previous 0.4%, Expected 0.4%, Actual??
Increase in PPI m/m – will have negative impact on bullion index and positive impact on dollar or vice versa.
07:00 P.M Core PPI m/m: Previous 0.4%, Expected 0.2%, Actual??
Increase in Core PPI m/m – will have negative impact on bullion index and positive impact on dollar or vice versa.
More will update soon!!!
