Market Update (Bullions)
Bullion counter may trade in narrow range as gold held steady on Friday on worries that a protracted Sino-U.S. trade war could worsen global economic slowdown, but a strong dollar put bullion on track for its first weekly loss in three. Gold (Apr) can face resistance near 33350 while it has support near 33000. Silver can dip lower as it can test 39700 while facing resistance near 40300. U.S. President Donald Trump said on Thursday he did not plan to meet with Chinese President Xi Jinping before a March 1 deadline set by the two countries to achieve a trade deal. The two countries had taken a 90-day hiatus in their trade war to work out a deal. Stocks pulled back sharply around the world on Thursday on fears of a global growth slowdown spreading to Europe and worry about the chances for a resolution of U.S.-China trade tensions anytime soon. Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell for a fifth straight session on Thursday. Holdings fell 0.80 percent from Wednesday.
Market Update (Base Metals)
Base metals prices may trade with sideways to negative bias. Copper may test 442 while facing resistance near 450 in MCX. London copper prices slid for a second session on Friday with concerns over global economic growth and U.S.-China trade tensions weighing on the market. Weak data in recent weeks in key global economies, including in top metals consumer China, has stoked fears of a recession. Chilean state copper miner Codelco saw a 1.9 percent drop in its output in 2018, at 1.8 million tonnes, while production at the world’s largest copper mine, Escondida, shot up 34 percent in the same year, Chile’s copper commission said on Thursday. Zinc can dip lower towards 192. Lead can move sideways in range of 146-150. Nickel can dip further lower and can test 910. Aluminum prices may find some support near 132.50. Russian aluminium giant Rusal said on Friday it sees demand for aluminium growing in 2019 with potential for prices to rise.
Market Update (Energy)
Crude oil may trade on volatile path as oil markets were cautious early on Friday, held back by concerns over a global economic slowdown but supported by supply cuts led by producer club OPEC and U.S. sanctions against Venezuela. Weighing on financial markets, including crude oil futures, were concerns that trade disputes between the United States and China would remain unresolved, denting global economic growth prospects. U.S. President Donald Trump said on Thursday he did not plan to meet with Chinese President Xi Jinping before a March 1 deadline set by the two countries to achieve a trade deal. Crude oil can test 3680 while facing resistance near 3780. Another risk to oil supply comes from Venezuela after the implementation of U.S. sanctions against the OPEC-member’s petroleum industry in late January. Natural as can dip lower towards 180 in MCX. Extreme volatility returned to the U.S. natural gas market on Thursday with futures plunging to their lowest in almost two and a half years after forecasts for warmer weather in February and a smaller-than-expected storage decline revived speculative selling.
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