Bullion counter may trade in narrow range as gold prices held steady on Wednesday after rising 0.3 percent in the previous session, with investors looking to U.S. President Donald Trump’s upcoming State of the Union address for hints on the outlook for Sino-U.S. trade. Gold (Apr) can face resistance near 33500 while taking support near 33200. Silver can face resistance near 40600 taking support near 40100. Trump will ask Congress in his address on Tuesday to pass legislation to boost the nation’s aging infrastructure, but will not explain how to pay for it, administration officials said. The speech will start at 7.30 pm IST.
Base metals prices may trade with sideways bias. Copper may face resistance near 450 while taking support near 440 in MCX. London copper prices edged lower on Wednesday, falling for the first time in three sessions on concerns over slowing factory activity in China – the world’s biggest industrial metals consumer. China’s factory activity shrank by the most in almost three years in January as new orders slumped further and output fell, a private survey showed, reinforcing fears that a slowdown in the world’s second-largest economy is deepening. Zinc can move sideways path in range of 195-201. Lead can also trade higher as it can test 152. Nickel can move on volatile path in range of 920-950. Nickel prices fell on Tuesday as traders took profits after betting the metal up to four-month highs in the previous session on concerns that Brazilian miner Vale could be forced to curtail supply.
Crude oil may trade on positive note as oil prices edged higher for the first time in three sessions on Wednesday, although concerns over the outlook for the global economy capped gains. Global economic worries have weighed on market sentiment in recent days, offsetting support from signs that global supplies are tightening. With a nervous market, traders are focused on the U.S. State of the Union address by President Donald Trump later today. U.S. sanctions on Venezuela have been viewed as supportive for prices by helping tighten global supplies. A flotilla loaded with Venezuelan oil has formed in the Gulf of Mexico, some holding cargoes bought ahead of the latest U.S. sanctions on Venezuela and others whose buyers are weighing who to pay. Crude oil can test 3920 levels while taking support near 3800.
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