Gold & Silver overview:
Gold remained down slightly yesterday as US Federal Reserve officials remain cautious about adjusting interest rates, emphasizing the need for further progress on inflation before making any changes, minutes from the Federal Open Market Committee’s (FOMC) January 28- 29 meeting showed. Participants indicated that, provided the economy remained near maximum employment, they would want to see further progress on inflation before making additional adjustments to the target range for the federal funds rate.
The silver gains momentum due to its safe-haven appeal remains strong amid global uncertainties. US President Donald Trump recently proposed a 25% tariff on automobiles, along with duties on semiconductors and pharmaceuticals. However, the non-interest-bearing Silver faced little downward pressure from recent highs as investors digest the latest Federal Open Market Committee (FOMC) Meeting Minutes. While, the precious metal gained support from strong industrial demand from electrification and manufacturing. China’s addition of 357 gigawatts of solar and wind power in 2024 further underscored Silver’s critical role in renewable energy. Additionally, the People’s Bank of China (PBOC) opted to keep its Loan Prime Rates (LPRs) unchanged, signaling a cautious approach to monetary stimulus.
Technical levels:
GOLD : A profit booking is expected in gold today. It has resistance at 87000 and support at 84500.
SILVER : Technically, day trend may remain sideways in silver today. It has support at 95000 and resistance at 98000.
Crude oil & Natural gas overview:
Oil prices were little changed on Thursday after rising to a near one-week high in the previous session, as an industry report showing a buildup in U.S. crude stockpiles pressured the market. U.S. crude stocks rose by 3.34 million barrels last week, American Petroleum Institute figures showed on Wednesday. Oil prices edged lower on Thursday because of the stock build in the U.S. The EIA reported inventory data at 4.6m while it stood at 4.1M last week. However, tight sanctions on Russia and Iran supporting prices recently.
U.S. natural gas futures surged over Arctic cold boosts heating demand while potential freeze-offs threaten supply. An incoming Arctic blast is driving a surge in heating demand and also fueling concerns over potential production freeze-offs. latest forecast models, colder-than-expected temperatures are expected across the central and eastern U.S. through early March. The EIA storage data also decreased to - 196 bcf from -100bcf yesterday, however trader kept profit booking in the previous session despite bullish inventory data.
Technical levels:
CRUDE OIL: Technically, day trend may remain upside in crude oil today. It has support at 6200 and resistance at 6500.
NATURAL GAS: Technically, prices may remain range-bound in today’s session. It has support at 340 and resistance at 371.
Base metals overview:
US initial jobless claims for the week ending February 15 slightly exceeded expectations, recording 219,000, higher than the expected 215,000. US Fed's Bostic stated that two interest rate cuts are still expected this year, but significant uncertainties remain. The US dollar index weakened noticeably. Meanwhile, the US announced on Wednesday that new tariffs would be introduced within the next month or sooner. Trump announced that lumber tariffs might be revealed on April 2. However, the US is currently negotiating a peace agreement with Russia, and the US has hinted that lifting sanctions could be part of the deal. Additionally, Trump stated that the likelihood of reaching a trade agreement with China is high, potentially easing trade dispute concerns in the short term. With the US dollar index weakening significantly, copper prices remained at relatively strong levels. Fundamentally, the contango structure widened, reducing suppliers' willingness to sell spot cargo. Meanwhile, as the export window opened, smelters began planning for exports, which is expected to support premiums in the future.
Technical levels:
COPPER: Copper formed a small-bodied candle yesterday, indicating indecision in the market. Resistance remains at 880, and support is at 850.
ZINC: Zinc broke out of its range with good volume. Resistance is at 274, and support is at 264.
ALUMINUM: Aluminum followed up with another strong candle yesterday. The next resistance is at 270, and support is at 256.
