Gold futures ended lower on Wednesday as the dollar strengthened against a basket of major currencies, a rally in US equities, and rising expectations for a March interest-rate hike by the Federal Reserve pushed futures to their lowest finish in a week. Meanwhile, the Institute for Supply Management (ISM) released a report showing that growth in manufacturing activity accelerated by much more than anticipated in the month of February. The ISM said its purchasing managers index climbed to 57.7 in February from 56.0 in January.
Crude oil futures declined on Wednesday reacting to the inventory data, as stockpiles surging for the eighth straight week swelled to a record high. The US Energy Information Administration (EIA) said that crude oil inventories rose by 1.5 million for the week ending February 24, less than forecast but touched a record high of 520.2 million. Gasoline inventories decreased by 546.00 barrels, while distillate stockpiles fell by 0.925 million barrels. While the weekly build was smaller than expected, there is little reason to think the global supply glut will end anytime soon as long as US producers keep pumping at a furious pace.
Copper futures ended higher on Wednesday as manufacturing data from top consumer China showed potential for strong demand, reinforcing worries about shortages due to supply disruptions. Though, some gains were capped on strong US dollar.
Technical Level
Gold
Support at 29240 and Resistance at 29460.
Break and sustain below 29240 will take to 29080---29030 and then to 28800 mark in days to come else could touch its resistance level of 29460 again.
Looks positive only close above 29460 mark.
Trade with levels only.
Silver
Support at 43700 and Resistance at 44150
Break and sustain below 43700 will take to 43450---43200 and then to 42900 mark in days to come else could touch its resistance level of 44150 again.
Looks positive only close below 44150 mark
Crude Oil
Support at 3550 and Resistance at 3650.
Close below 3550 will take it to 3480---3430 mark. Further downside panic will see close below 3430 else it could touch its resistance levels of 3650 again.
Overall trend looks choppy and has no clear direction. So trade in a range with levels only and wait for confirmation.
Copper
Support at 400 and resistance at 409---415
Break and sustain below 400 will take it to 396—392 and then to 386 mark else could touch resistance level of 409--- 415 mark.
Fresh buying only above 415.00
Trade with levels only
Major Economic Data
07:00 P.M Unemployment Claim: Previous 244K Forecast 243K, Actual –??
Impact – Increase in Unemployment Claims – will have positive impact on bullion and negative impact on base metals and dollar index or vice – versa.
09:00 P.M Natural Gas Storage: Previous -89B, Forecast -5B, Actual –??
Impact – Increase Natural Gas Storage – will have negative impact on natural gas prices or vice versa.
More will update soon!!
