Bullion counter may trade with upside bias as gold prices held near seven-month highs on Thursday as the dollar was pressured by rising expectations the U.S. Federal Reserve will keep interest rates steady this year, while investors also waited for further news on Sino-U.S. trade talks. A range of U.S. Federal Reserve policymakers said last month that they could be patient about future interest rate increases and a few did not support the central bank’s rate increase that month, minutes from their Dec. 18-19 policy meeting showed. Federal Reserve Chairman Jerome Powell said he was aware of risks to the economy and would be patient and flexible in policy decisions this year.
Base metals prices may witness some lower level buying. Copper may recover towards 423 while taking support near 412 in MCX. London copper was little changed in early Asian trade on Thursday as the red metal sought to cling on to gains made from optimism over the latest round of U.S.-China trade talks in Beijing. India’s Supreme Court cleared the way for Vedanta to reopen its south Indian copper smelter by refusing to stay an order from the country’s environmental court. Copper concentrate exports from Indonesia’s Grasberg mine, the world’s second-largest copper mine, are forecast to plunge this year because of a lag in output as operations move from open pit to underground mining, a government official said on Wednesday.
Crude oil may witness profit booking at higher levels as oil prices fell by 1 percent on Thursday on swelling U.S. supply, although the mood in global markets was increasingly confident amid hopes the United States and China may soon end trade disputes that have undermined global economic growth. Crude oil can face resistance near 3750 while it has support near 3600. Oil prices have also been receiving support from supply cuts started at the end of 2018 by a group of producers around the OPEC as well as non-OPEC member Russia. Saudi Arabia’s energy minister said on Wednesday he was confident that supply cuts started in late 2018 by the Organization of the Petroleum Exporting Countries (OPEC) and some allies, including Russia, aimed at reining in oversupply would bring the oil market into balance.
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