Market Update (Bullions)
Bullion counter may remain sideways bias as gold prices held firm on Wednesday as the dollar weakened on hopes of a trade deal between the United States and China, but an improved risk appetite limited gains. U.S. and Chinese officials expressed hopes that a new round of trade talks, which began in Beijing on Monday, would bring them closer to easing their nearly year-long trade war. Gold can face resistance near 33100 while it has support near 32750. Silver can witness lower level buying as it can 39800 taking support near 39500. The risk of a U.S. recession is not currently elevated, Federal Reserve Chairman Jerome Powell said on Tuesday. Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.40 percent to 798.89 tonnes on Tuesday from Monday. In Washington, U.S. lawmakers reached a tentative deal on border security funding, although aides cautioned that it did not contain the $5.7 billion President Donald Trump wants to build a wall on the Mexican border.
Market Update (Base Metals)
Base metals prices may witness some lower level buying. The world’s two biggest economies are currently holding their latest round of trade talks in Beijing. If they cannot reach a deal to end their trade dispute by March 1, U.S. tariffs on $200 billion worth of Chinese imports are scheduled to increase to 25 percent from 10 percent. U.S. President Donald Trump said on Tuesday he could see letting the March 1 deadline for reaching a trade agreement with China slide a little, but that he would prefer not to and expects to meet Chinese President Xi Jinping to close the deal at some point. Copper may test 440 while taking support near 430 in MCX. London copper prices rose on Wednesday, on track to snap four consecutive sessions of declines, after U.S. President Donald Trump said he could see the deadline for a trade agreement with top metals consumer China being pushed back. Zinc can move in range of 182-186. Lead can move sideways in range of 142-145. Nickel can take support near 860 and can recover towards 885. Aluminum prices may find some support near 129.
Market Update (Energy)
Crude oil may open on firm note tracking as oil prices rose by around 1 percent on Wednesday as producer club OPEC said it had deeply cut supply in January and as U.S. sanctions hit Venezuela’s oil exports. Saudi Arabia announced it was cutting daily production and exports by a further 500,000 barrels per day (bpd) on top of its agreed OPEC quota cut. Crude oil can test 3850 while taking support near 3740. The Organization of the Petroleum Exporting Countries (OPEC), which Saudi Arabia de-facto leads as the world’s top crude oil exporter, said on Tuesday that it had cut its output by almost 800,000 bpd in January to 30.81 million bpd. Supply issues in Venezuela, another OPEC member, are also bolstering oil markets as the South American country suffers a political and economic crisis, with Washington introducing petroleum export sanctions against state-owned energy firm PDVSA. Natural gas may remain subdued as it can test 185 in MCX.
Investment & trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance.
CapitalStars Investment Adviser: SEBI Registration Number: INA000001647