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Gold Market Analysis and Updates

Market Outlook

Gold prices were higher on Thursday, staying near the strongest level in around three weeks as the U.S. dollar slipped after the Federal Reserve signaled a cautious approach to future rate hikes and the reduction of its $4.5 trillion balance sheet. Oil sank Thursday as it shed early gains of about 1% as OPEC signaled a nine-month extension of output cuts of the same magnitude. OPEC and non-OPEC producers are cutting output by 1.8 million barrels a day in the first half. The base metals are split into three camps; copper, aluminium and tin have regained their upward bias, zinc is consolidating in high ground, while lead and nickel prices remain weak.

Fundamental News

The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.

U.S. oil production has already risen by more than 10 percent since mid-2016 to over 9.3 million bpd as its drillers take advantage of higher prices and the supply gap left by OPEC and its allies.

Gold showed sideways movement and found the important resistance level of 28800. Now if it will close above the important resistance level of 28800 then 29000 will act as next resistance level. On the other hand 28500 will act as a major support level.

Silver showed sideways movement and found the important resistance level of 40000. Now if it will close above the important resistance level of 40000 then 40500 will act as next resistance level. On the other hand 39600 will act as a major support level.

Crude showed bearish movement and broke its important support level of 3200. Now if it will close below the important support level of 3200 then 3100 will act as next support level. On the other hand 3250 will act as a major resistance level.

Copper showed sideways movement and find the important resistance level of 375. Now if it will close above the important resistance level of 375 then 380 will act as next resistance level. On the other hand 369 will act as a major support level.

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