Bullion counter may witness profit booking at higher levels .Gold held steady on Tuesday as bets on a pause in U.S. interest rate hikes and hopes of a Sino-U.S. trade deal put pressure on the dollar, but an improved risk appetite capped gains for the safehaven metal. On Friday, U.S. central bank chief Jerome Powell told the American Economic Association that the Fed was not on a preset path of rate hikes and it would be sensitive to the downside risks markets were pricing in. Gold can dip towards 31500 in MCX and silver can move lower 39000. Gold gains when expectations of interest rate hikes ease because lower rates reduce the opportunity cost of holding non-yielding bullion and weigh on the dollar, in which it is priced.
Base metals prices may remain sideways as investors are cautious about the outcome of US China trade deal. Copper may dip towards 405 while facing resistance near 412 in MCX. London copper prices drifted lower in early Asian trade on Tuesday as the dollar strengthened, while investors awaited the outcome of the latest round of U.S.-China trade talks in Beijing. Chile’s copper production could jump by nearly 30 percent over the next 10 years, Chile’s state copper agency Cochilco said on Monday. Chile’s copper production could jump by nearly 30 percent over the next 10 years, Chile’s state copper agency Cochilco said on Monday. Cochilco said in a report that output from Chile, the world’s top producer of the red metal, could reach a record of 7.25 million tonnes as early as 2025. Zinc can move sideways as it can face resistance near 178 while it has support near 173. India is closely monitoring impact of cheap steel imports from China on domestic industry, the government said in a statement.
Crude oil may trade in range as oil prices were stable on Tuesday, supported by hopes that talks under way in Beijing involving U.S. and Chinese officials could end trade disputes between the world’s biggest economies, while OPEC-led supply cuts also tightened markets. Despite optimism around the talks in Beijing, some analysts warned that the relationship between Washington and Beijing remained on shaky grounds, and that tensions could flare up again soon. Crude oil can face resirane near 3500 while it has support near 3350. Looking at oil supplies, 2019 crude prices have been supported by supply cuts from a group of producers around the Middle East-dominated Organization of the Petroleum Exporting Countries (OPEC) as well as non-OPEC member Russia.
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