Technical Levels of Gold and other Major Commodities
Major economic data for the evening session
6:00 PM – Core PCE Price Index m/m, Employment cost Index q/q, Personal income m/m, Personal spending m/m data will be at
7:30 PM – Revised UoM Consumer sentiment and Revise UoM inflation expectations data
Gold prices held firm near a two-week high on Friday, heading for their biggest weekly gains in more than two months after the U.S. Federal Reserve cemented investor’s hopes that interest rates are going to stay low for some time. Fed Chair Jerome Powell on Wednesday said the U.S. job market still had some ground to cover before it would be time to pull back support and that it was “ways away” from considering interest rate hikes. Meanwhile, data showed the U.S. economy expanded at a 6.5% annualized rate in the second quarter, but growth fell short of economists’ expectations. Dovish remarks by the U.S. central bank and underwhelming economic data pushed the dollar to a one-month low and on track for its biggest down week since May, making gold more appealing for other currency holders.
Crude oil prices fell on Friday but remained on track to post weekly gains with demand growing faster than supply, while vaccinations are expected to alleviate the impact of a resurgence in COVID-19 infections across the globe. Even with coronavirus cases rising in the United States, all around Asia, and parts of Europe, analysts said higher vaccination rates would limit the need for the harsh lockdowns that gutted demand during the peak of the pandemic last year. Oil prices will trade near $70 per barrel for the rest of the year supported by the global economic recovery and a slower-than-expected return of Iranian supplies, with further gains limited by new coronavirus variants, a Reuters poll showed.
Gold has support at 48200 and resistance at 48500. Sustained above 48500 can see the upside move towards 48700…48900 and if it breaks and sustain below 48200 will see the more downside towards 48000…47800.
Silver has support at 67500 and resistance at 68500. Sustainable trade below 67500 will see the good downside move towards 67000—66500 levels and if it sustains above 68500 will catch the upside move towards 69000…69500.
Copper has support at 750 and resistance at 760. Sustainable trade Below 750 can move towards 745…740 levels and if sustains above 760 can see the good move again towards 765/770.
Lead has support at 176.50 and resistance at 179. More downsides can see if it breaches the level of 176.50 and sustainable trade above 179 will see the good upside move towards 181…183.
Zinc has support at 246 and resistance at 249. Sustainable trade below 246 will see the downside move towards 244…242 and if it sustains above 249 will catch the upside move again towards the next resistance of 251…253.
Nickel has support at 1485 and resistance at 1512. Break and sustain below 1485 will take it to 1470 —1460 levels and if it is breached and sustains above 1512 can see further upside towards 1525…1540 level.
Natural gas has support at 292 and resistance at 303. Sustainable trade below 292 will see the downside move towards 288—283 and if it breaks and sustain above 303 can see the upside move towards 308…313.
Crude oil has support at 5420 and resistance at 5500. Break and sustain below 5420 can move towards 5370…5320 and sustainable trade above 5500 again can move towards 5550…5600.
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