Gold fell for the first time in three days, cutting a weekly gain, as a rally following the Federal Reserve’s decision to hold stimulus curbed physical demand and as data showed signs the U.S. economy is improving.
Silver for immediate delivery fell 1.8 percent to $22.6472 an ounce in London, cutting its weekly gain to 1.9 percent, the most in four weeks. Platinum slipped 0.7 percent to $1,453.75 an ounce. Palladium declined 1.4 percent to $724 an ounce.
Gold moved higher overnight to open at 1370.00/1371.00 after yesterday’s Fed announcement that it would not taper its bond purchase program. It declined to a low of 1358.50/1359.50 on the back of better than expected Claims and Philly Fed numbers. Buying throughout the rest of the day saw the metal rally to a high of 1374.50/1375.50 prior to concluding the day at 1368.75/1369.75.
Gold closed higher today at 1369,
following yesterday’s strong gain. Support is at 1337, the 38.2%
retracement of the June 28 to August 28 uptrend. Resistance is at
1433, the most recent major high. Technicals are starting to look a
bit more positive, but we would still prefer to see a weekly close
higher to signal a resumption of the uptrend that has been in place
since late June.
Gold rose after the Federal Reserve
shocked markets by choosing not to cut back on its asset-buying
programme for now.
Fed Chairman said he wanted to “wait
a bit longer and to try to get confirming evidence” that the
economy is showing signs of lasting improvement.
SPDR Gold Trust said its holdings rose
0.10 percent, or 0.88 tonnes, to 912.00 tonnes.
Technical Levels
Support-1: 1360 Support-2: 1351
Support-1: 1360 Support-2: 1351
Resistance-1: 1377 Resistance-2: 1393
Silver also improved overnight
to open at 23.31/23.36. It declined to a low of 23.00/23.05 before
rallying to an intra-day high of 23.39/23.44 amidst buying pressure.
It traded within range for the remainder of the day before
concluding the session at 23.21/23.26.
Silver closed higher at 23.21. The RSI
(Relative Strength Index) is at 53.41, after testing the low-40
support area. RSI previously traded up to 80 on the last price high
in silver; this 40 to 80 range is generally bullish. Support is at
22.48, which is the 38.2% retracement of the June 28 to Aug 28
range. Resistance is at the major high of 25.10.
The gold-silver ratio is trading lower
at current 59.26. It has been in a sideways consolidation since
August 15th. We still see the risk to the downside. Support is at
the consolidation lows in the low-57s, with resistance at
yesterday’s high at 61.13.
Silver rose as news that the Federal
Reserve refrained from tapering its stimulus program weighed on the
U.S. dollar, sending the precious metal sharply higher.
Bernanke refused to commit to reducing
bond purchases this year, saying the stimulus program was “not on a
preset course.”
Holdings at ishares silver trust rose
by 104.93 tonnes to 10602.67 tonnes from 10497.74 tonnes.
Technical Levels
Support-1: 22.82 Support-2: 22.52
Support-1: 22.82 Support-2: 22.52
Resistance-1: 23.39 Resistance-2: 23.83
On the Comex division of the NewYork Mercantile Exchange, copper futures for December delivery traded
at USD3.346 a pound during European morning trade, Trading range of
copper today between 3.376 to 3.325.
Copper on LME was poised for the
biggest weekly gain in a year after the Federal Reserve unexpectedly
maintained monetary stimulus in the U.S., the second-biggest consumer
of the metal.
Copper dropped as rupee firmness
weighed but downside was limited as the Federal Reserve’s decision
to hold its stimulus supported prices.
Fed’s Bernanke did not commit to
reducing the bond purchases this year, and instead went out of his
way to stress the program was “not on a preset course.”
The global refined copper market was in
a 200,000-metric-ton surplus during the first seven months of the
year – WBMS.
Technical Levels
Support-1: 3.3326 Support-2: 3.3153
Support-1: 3.3326 Support-2: 3.3153
Resistance-1: 3.3601 Resistance-2: 3.3703
On the New York Mercantile Exchange,
light, sweet crude futures for November delivery fell 0.34% to
USD105.50 per barrel in Asian trading Friday. The November contract
settled down 1.32% to USD105.86 per barrel on Thursday.
Prices soared on Wednesday after the
Energy Information Administration reported that U.S. crude oilstockpiles dropped by 4.37 million barrels in the week ending Sept.
13, well beyond expectations for a decline of 1.39 million barrels
and far past a decline of 219,000 barrels in the previous
week.
Profit-taking kicked in by Thursday, especially on sentiment that a U.S.-led attack on Syria is becoming increasingly less likely now that diplomatic efforts appear to poised to prompt Damascus to hand over its cache of chemical weapons.
Profit-taking kicked in by Thursday, especially on sentiment that a U.S.-led attack on Syria is becoming increasingly less likely now that diplomatic efforts appear to poised to prompt Damascus to hand over its cache of chemical weapons.
Oil futures traded lower during
Friday’s Asian session after some of the post-Federal Reserve
meeting euphoria wore off the commodities complex and despite some
solid U.S. data points out Thursday.
Technical Levels
Support-1: 105.31 Support-2: 104.10
Resistance-1: 108.22 Resistance-2: 110.06
Support-1: 105.31 Support-2: 104.10
Global Economic Data
TIME | DATA | IMPACT |
10.00P.M | FOMC Member George Speaks | MEDIUM |
10.10P.M | FOMC Member Tarullo Speaks | LOW |
10.25P.M | FOMC Member Bullard Speaks | STRONG |
FOMC Member George Speaks
Description | Due to speak about the economy at the Manhattan Institute of Policy Research, in New York; |
Source | Federal Reserve Bank of Kansas City(latest release) |
Speaker | Federal Reserve Bank of Kansas City President Esther George; |
Usual Effect | More hawkish than expected = Good for currency; |
Next Release | Sep 24, 2013 |
FF Notes | 2013 FOMC voting member; |
Why Traders Care |
Federal Reserve FOMC members vote on where to set the nation's key interest rates and their public engagements are often used to drop subtle clues regarding future monetary policy; |
Acro Expand | Federal Open Market Committee (FOMC); |
FOMC Member Bullard Speaks
Description | Due to speak about the US economy and monetary policy at the Association of Economists luncheon, in New York. Audience questions expected; |
Source | Federal Reserve Bank of St. Louis(latest release) |
Speaker | Federal Reserve Bank of St. Louis President James Bullard; |
Usual Effect | More hawkish than expected = Good for currency; |
FF Notes | FOMC voting member 2010 and 2013; |
Why Traders Care |
Federal Reserve FOMC members vote on where to set the nation's key interest rates and their public engagements are often used to drop subtle clues regarding future monetary policy; |
Acro Expand | Federal Open Market Committee (FOMC); |
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