Bullion counter may witness range bound movement as gold held steady on Wednesday as a surge in risk appetite on hopes of a Sino-U.S. trade deal offset support from expectations of a pause in U.S. Federal Reserve rate hikes. The United States and China will continue trade talks in Beijing for an unscheduled third day, a member of the U.S. delegation said on Tuesday amid signs of progress on issues including purchases of U.S. farm and energy commodities and increased access to China’s markets. Gold can find support near 31500 in MCX while upside will be capped near 31850. Silver can find support near 39100 and upside will be capped near 39550. Gold prices have gained about 11 percent since hitting a more than 1-1/2-year low in mid-August due to tumultuous stock markets and a slightly weaker dollar.
Base metals prices may witness lower level buying as most base metals rose in early Asian trade on Wednesday, buoyed by a report that top metals consumer China would try to boost spending on autos and home appliances this year, as well as signs of progress in Sino-U.S. trade talks.. Copper may recover towards 413 while taking support near 405 in MCX. Three-month copper on the London Metal Exchange had risen 0.9 percent to $5,959.50 a tonne by 0138 GMT, after slipping 0.3 percent in the previous session. Zinc can move sideways as it can face resistance near 178 while it has support near 173. However, the recent rebound in zinc prices is unlikely to sustain as the seasonality factors are likely to weaken consumption and cap gains in prices.
Crude oil may trade in green as oil prices rose on Wednesday, extending gains from the previous session on hopes that Washington and Beijing can resolve a trade dispute that has triggered a global economic slowdown. Crude oil can face resistance near 3570 while it has support near 3400. Crude exports from the Middle East for the first week of 2019 increased by 4.28 million bbl w-o-w to 122.38 million bbl. The gain came on the back of higher exports from the UAE, Saudi Arabia and Oman with the Emirates recording the highest weekly gain amongst its regional counterparts.
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