Bullion counter may continue its upside momentum as gold prices rose to a fresh 6-1/2 month high on Friday as tumbling share markets on the back of weak U.S. data fanned fears of a global economic slowdown, putting the safe haven metal on track for a third weekly gain. Global markets were on edge on Friday as dire U.S. economic data slammed Wall Street and pushed investors to bet the Federal Reserve could reverse its policy tightening before the end of this year. Gold can test 32000 in MCX taking support near 31650 in MCX and silver can move further upwards towards 39800. Markets are awaiting the December payrolls report on Friday and will look for clues on U.S. interest rates when Federal Reserve Chair Jerome Powell meets former Fed chairs Janet Yellen and Ben Bernanke later in the day.
Base metals prices may witness some lower level buying after the steep fall witnessed yesterday. China’s economic growth could fall below 6.5 percent in the fourth quarter as companies face increased difficulties, a central bank magazine said on Wednesday. China’s factory activity contracted for the first time in 19 months in December as domestic and export orders weakened further, a private survey showed. Mining companies operating in Zambia have failed to show how higher taxes introduced this year will affect their profitability despite objecting to the new framework, a senior government official said on Thursday.
Crude oil may trade in range on mixed fundamentals .Oil prices dropped on Friday after the United States followed most other major economies into a manufacturing downturn, although supply cuts by producer club OPEC kept declines in check. Crude oil can face stiff resistance near 3340 while it can take support near 3240. Despite the global market turmoil, traders said oil prices are expected to receive some support as supply cuts announced late last year by the Organization of the Petroleum Exporting Countries (OPEC) start to kick in.
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