Technical Levels of Major MCX Commodities
Major economic data for the evening session.
6: PM – PPI m/m and Core PPI m/m data
8: PM – Crude oil inventories
Gold prices rose on Wednesday after robust U.S. inflation numbers lifted the metal’s appeal as an inflation hedge, although gains were kept in check ahead of Federal Reserve Chair Jerome Powell’s testimony as early tapering bets rise. “On the one hand, gold is getting boosted by inflation hedge, but on the other hand, the rising market expectation for a rate hike at the end of 2022 is offsetting some of the price advances.” The biggest rise in U.S. consumer prices in 13 years has intensified investor focus on messaging from the Fed. Futures on the federal funds rate raised bets on Tuesday that the Fed would tighten monetary policy between December 2022 and early in the first quarter of 2023 after stronger-than-expected U.S. inflation data.
Crude oil prices dropped on Wednesday after Reuters reported that Saudi Arabia and the United Arab Emirates had reached a compromise over a global supply deal that will allow the UAE to boost its output. The deal between the two Gulf producers means that members of the Petroleum Exporting Countries (OPEC), Russia, and other producers, a group is known as OPEC+, will be able to extend a deal to curb output until the end of 2022, the sources said. Disagreement between OPEC’s de facto leader Saudi Arabia and the UAE led to a collapse in talks last week on boosting production as global demand recovers from the coronavirus pandemic. Oil prices were earlier under pressure after data showed China’s crude imports dropped by 3% from January to June compared with a year earlier, the first such contraction since 2013, as import quota shortages, refinery maintenance, and rising global prices curbed buying.
Gold
Gold has support at 47850 and resistance at 48100. Sustained above 48100 can see the upside move towards 48300…48500 and if it breaks and sustain below 47850 will see the more downside towards 47600…47400.
Silver
Silver has support at 68900 and resistance at 69700. Sustainable trade below 68900 will see the good downside move towards 68300—67800 levels and if it sustains above 69700 will catch the upside move towards 70200…70700.
Copper
Copper has support at 720 and resistance at 728. Sustainable trade Below 720 can move towards 715…710 levels and if sustains above 728 can see the good move again towards 732/736.
Lead
Lead has support at 177.50 and resistance at 180.50. More downsides can see if it breaches the level of 177.50 and sustainable trade above 180.50 will see the good upside move towards 182…184.
Zinc
Zinc has support at 238.40 and resistance at 242. Sustainable trade below 238.50 will see the downside move towards 236…234 and if it sustains above 242 will catch the upside move again towards the next resistance of 244…246.
Nickel
Nickel has support at 1390 and resistance at 1411. Break and sustain below 1390 will take it to 1375 —1360 levels and if it is breached and sustains above 1411 can see further upside towards 1422…1435 level.
Natural Gas
Natural gas has support at 272 and resistance at 280. Sustainable trade below 272 will see the downside move towards 267—262 and if it breaks and sustain above 280 can see the upside move towards 285…290. More correction is expected in this counter.
Crude Oil
Crude oil has support at 5500 and resistance at 5630. Break and sustain below 5500 can move towards 5450…5400 and sustainable trade above 5630 again can move towards 5680…5730.
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