Bullion counter may trade with positive bias as it edged up to a seven-month high on Tuesday, as the dollar weakened ahead of a two-day U.S. Federal Reserve meeting, which will likely keep interest rates steady, and on worries over a rise in Sino-U.S. trade tensions. Gold (Apr) can test 32800 taking support near 32250. Silver can test 40200 taking support near 39600. Investors are focusing on the Fed’s two-day policy meeting, starting later in the day, when the U.S. central bank is expected to leave interest rates unchanged. Some U.S. central bank officials have said they will be patient in raising rates given the stalemate over global trade, the U.S. federal government shutdown, and waning business and consumer confidence.
Base metals prices may trade with sideways path. Copper may trade on weaker path as it can test 416 while facing resistance near 428 in MCX. Zinc can move sideways to negative path as it can test 188. Lead can witness profit booking at higher levels as it can test 145. Nickel can move sideways in range of 825-845. Aluminum prices can move further lower and can test 130. London aluminium prices inched up early on Tuesday following a plunge in the previous session, with investors’ focus returning to inventories and the upcoming U.S. Federal Reserve meeting. Aluminium users around the world will pay less for their material after the United States lifted sanctions on major producer Rusal, but U.S. tariffs on imports of the metal mean limited gains for the country’s consumers.
Crude oil may trade in green as oil prices oil prices crept higher on Tuesday after the U.S. government slapped sanctions on Venezuela’s state-owned oil firm PdVSA in a move aimed at severely curbing the OPEC member’s crude exports to the United States.. Despite their political differences, the United States remains a major destination for Venezuelan oil, although volumes have steadily declined over the past years amid Venezuela’s economic crisis and as the U.S. government has started targeting Caracas’ financial sector with sanctions. The U.S. government is supporting Venezuelan opposition leader Juan Guaido, who proclaimed himself interim president last week and is demanding the resignation of sitting President Nicolas Maduro. Crude oil can test 3750 levels while taking support near 3640.
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