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Gold prices fell more than 1% to a fresh 8-month lows, as the dollar rallied and supported by concerns about forecasts that the U.S. Federal Reserve may indicate a faster pace of interest rate hikes than previously projected.

The gold holdings of SPDR gold trust declined to 784.22 tons as on Sept. 16, while that of ishares Silver trust increased to 10,589.15, as on Sept 17. The U.S. Fed pledged to keep interest rates near zero for a “considerable time” boosting the dollar and U.S. equities, while bullion reversed earlier gains after the forecasts signaled an earlier-than-expected increase in interest rates next year.

The dollar strengthened against major currencies on Wednesday, as investors overlooked the Federal Reserve’s statement on monetary policy and despite a dovish language, rates still remain on track to rise
in 2015.

Gold futures traded steadily after initial lower opening, but eased slightly in the second-half of the session, breaching support at 26900 and are also facing resistance on the downward sloping trend line as marked on the chart.

Gold now holds immediate support at 26790, below which it can fall further towards supports at 26600 and 26450 levels, while resistance holds at 27000 and next at 27120.

Silver futures declined in the first-half of the trading session, and later prices consolidated in a range, with slight recovery seen towards in the closing session. Silver futures now hold immediate support at 41000 and next at 40700, while resistance holds at 41530 and next at 41780.

Brent oil prices fell below $99 per barrel, after a bigger-than-expected build in weekly U.S. crude stocks, and a strong dollar continued to create headwinds for commodities. U.S. crude stocks rose more than twice as much as expected on a w-o-w basis, as refineries cut output and imports jumped – the EIA report said.

Crude oil inventories were up 3.7mn barrels, gasoline supplies were down 1.6mn barrels, while distillates supplies rose 300,000 barrels, as per the EIA. Libya’s El Sharara oil field was shut on Wednesday after a tank was damaged at the Zawiya refinery, which it supplies, closing around 200,000 barrels a day of output.

Natural gas prices traded positively in yesterday’s session, as short-term forecasts turned slightly cooler, raising expectations for gas-fired heating demand. Natural gas inventories are expected to increase by 75-80bn cubic feet, actual data will be released by EIA later in the day.

Crude oil futures traded steadily in the first-half of the trading session, but fell in the second-half after prices sustained below 5740 levels. Prices now hold immediate support at 5710 & next at 5680, with resistance at 578 and next at 5810. Natural gas futures traded steadily in the first-half of the session, but later rallied in the second-half and consolidated around those levels.

Prices now hold immediate support at 242 and next at 239, while resistance is seen at 247 and next at 248.5.

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