Gold prices steady, buoyed by tepid U.S. economic data.
Gold prices held firm on Monday after marking their best quarter in a year, supported by uninspiring economic data from the United States and dovish remarks from a Federal Reserve official on Friday. U.S. consumer spending barely rose in February amid delays in the payment of income tax refunds, but the biggest annual increase in inflation in nearly five years supported expectations of further interest rate hikes this year. The Fed could pause interest rate hikes when it begins shedding its bond holdings, a move that would have little effect on financial markets, St. Louis Fed President James Bullard said on Friday. "The interest rate hike cycle has set in and that might keep gold in a wide range of $1,200-$1,250 as the opportunity cost of holding non-interest rate bearing gold is more," said Mark To, head of research at Hong Kong's Wing Fung Financial Group. "But, there are still some uncertainties in the political climate. The two counteractive forces will determine the consolidation within that range, which is very likely to persist."
Zinc Inventories Decline Further in China Three Markets.
Combined zinc inventories in Shanghai, Tianjin and Guangdong decreased 8,500 to 260,900 tone’s this past week, SMM data show. Inventories fell across Shanghai, Tianjin and Guangdong this past week, and should see further drop, SMM said. Zinc prices are expected to move at highs after the Chinese Qingming Festival, SMM foresees. LME zinc will move at $2,790-2,890 per tons range, SMM predicts. SHFE May zinc will fluctuate in a range of 22,800-23,800 yuan per ton.
Mexican Copper, Zinc Output Increases in January, Lead Production down.
The National Statistics Institute data show Mexico’s copper and zinc production increased in January, while lead output fell, wenhua.com reported. The country’s copper output was 42,222 tons in January, up 20.6% year-onyear. Zinc production rose 5.8% year-on-year to 39,255 tones. Lead output reported a 1.2% year-on-year decline to 14,839 tone’s in January.
Oil prices fall on supply concerns as U.S. rig count rises.
Oil futures dipped in early Asian trade on Monday on worries about global oversupply after a higher U.S. rig count pointed to rising U.S. shale production, while a stronger dollar also put pressure on crude. Both contracts posted their worst quarterly loss since late 2015 in the March quarter. U.S. futures fell nearly 6 percent from the previous quarter, while Brent lost 7 percent as rising inventory levels outpaced output cuts by OPEC and non-OPEC members. Crude oil prices staged a three-day rally last week amid expectations members of the Organization of the Petroleum Exporting Countries (OPEC) and non-members such as Russia would extend production cuts beyond June. But prices fell on Friday after energy services firm Baker Hughes said the U.S. rig count increased by 10 to 662 last week, making the first quarter the strongest for oil rig additions since mid-2011. Iraq plans to increase its oil output capacity to 5 million barrels per day before the end of the year, but Baghdad has assured OPEC it will fully comply with the pact to cut oil supply, Oil Minister Jabar al-Luaibi and OPEC Secretary General Mohammed Barkindo said on Sunday.
Precious Levels
CS GOLD (JUNE) OVERVIEW:
TREND : BEARISH
RESIST 2: 29100
RESIST 1: 28900
SUP 1: 28600
SUP 2: 28450
CS SILVER (MAY) OVERVIEW:
TREND : SIDEWAYS
RESIST 2: 42600
RESIST 1: 42400
SUP1: 41800
SUP2: 41350
Base Metal Levels
CS COPPER (APRIL) OVERVIEW:
TREND : BEARISH
RESIST 2:389
RESIST 1:384
SUP1:374
SUP2:370
CS NICKEL (APRIL) OVERVIEW:
TREND : SIDEWAYS
RESIST 2:670
RESIST 1:660
SUP1:640
SUP2:620
CS ZINC (APRIL) OVERVIEW:
TREND : BEARISH
RESIST 2:181.50
RESIST 1:180.00
SUP1:177.00
SUP2:175.00
CS LEAD (APRIL) OVERVIEW:
TREND : SIDEWAYS
RESIST 2: 154.00
RESIST 1: 152.50
SUP1: 148.00
SUP2: 147.00
CS ALUMINIUM (APRIL) OVERVIEW:
TREND : BULLISH
RESIST 2: 129.00
RESIST 1: 128.00
SUP1: 126.00
SUP2: 125.00
Energy Levels
CS CRUDE OIL (APRIL) OVERVIEW:
TREND :BULLISH
RESIST 2:3400
RESIST 1:3360
SUP1:3220
SUP2:3180
CS NATURAL GAS (APRIL) OVERVIEW:
TREND : SIDEWAYS
RESIST 2:215.00
RESIST 1:212.00
SUP1:205.00
SUP2:201.00
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