Bullion counter may trade with positive bias as gold prices held steady on Wednesday, as mounting concerns over a slowing global economic growth and uncertainty around Sino-U.S. trade tensions dampened appetite for risk. Investors shunned risky assets like equities as the International Monetary Fund warned of a dimmer outlook on Monday, China confirmed its slowest growth rate in nearly 30 years and as Brexit uncertainty dragged on sentiment. Gold can test 32300 taking support near 32000. Silver can test 39200 taking support near 38850. U.S. home sales tumbled to their lowest level in three years in December and house price increases slowed sharply, suggesting a further loss of momentum in the housing market. Spot gold rose 0.4 percent on Tuesday, its biggest one-day percentage gain in more than a week, as global stock markets fell on concerns over global growth.
Base metals prices may open on sideways to positive note. Copper may test 425 while taking support near 415 in MCX. The union of supervisors at Chilean state miner Codelco’s Gabriela Mistral mine has rejected the company’s final offer for a new collective labour agreement, raising the spectre of a strike in the coming days. Zinc can move sideways to positive path as it can test 187. Lead can take support near 141 and can face resistance near 146. Nickel can move in range of 820-830. The global nickel market deficit narrowed to 4,900 tonnes last November from the previous month’s deficit of 10,600 tonnes. Aluminium can test 137 levels while taking support near 133 levels. Aluminium prices hit their highest in nearly a month on Tuesday as investors brushed off weaker economic growth in China to focus on signs of falling production.
Crude oil may trade in green as prices stabilized on Wednesday after steep falls in the previous session, when markets were dragged down by growing concerns about an economic slowdown. Oil markets have been underpinned this year by production cuts led by the Organization of the Petroleum Exporting Countries (OPEC), aimed at reining in an emerging supply overhang. The decline followed a 2 percent fall in crude oil futures and a slump in global financial markets on Tuesday as concerns over global growth spooked investors into looking for safe-haven assets. A global economic downturn is widely expected to also dent fuel demand growth, weighing on energy prices.
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