Bullion counter may trade with upside bias as gold prices edged up on Friday as the dollar softened a touch on expectations the U.S. central bank will keep interest rates steady if the economy slows this year, while the Sino-U.S. trade spat also remained in focus. Gold can find support near 31800 in MCX and can recover towards 32000. Silver can find support near 39300 and can recover towards 39600. Recently the Federal Reserve released its Dec meeting minutes that suggested policymakers will wait to deliver more interest rate hikes until they have a better handle on whether slowing global growth and financial market volatility will undercut an otherwise solid U.S. economic outlook.
Base metals prices may witness some lower level buying. China’s commerce ministry said on Thursday trade talks with the United States this week were extensive and detailed, and established a foundation for the resolution of each other’s concerns. Washington has presented Beijing with a long list of demands that would rewrite the terms of trade between the world’s two largest economies. They include changes to China’s policies on intellectual property protection, technology transfers, industrial subsidies and other non-tariff barriers to trade. Copper may recover towards 422 while taking support near 410 in MCX. London copper prices edged higher in early Asian trade on Friday as the dollar weakened, making metals cheaper for holders of other currencies, while investors welcomed signs that talks to resolve the U.S.-China trade row were moving to the next level.
Crude oil may witness profit booking at higher levels as oil prices slipped on Friday as concerns over economic growth were rekindled after talks fell short of offering concrete steps to end the Sino-U.S. trade conflict, although OPEC-led production cuts bolstered sentiment in crude markets. Oil prices were also supported by comments from U.S. Federal Reserve Chairman Jerome Powell on Thursday that the central bank had the ability to be patient on monetary policy. Crude oil can face resistance near 3750 while it has support near 3600. U.S. crude oil imports averaged 7.85 million barrels per day last week, up by 454,000 barrels per day from the previous week, while crude oil exports averaged 2.07 million barrels per day last week, down by 172,000 barrels per day from the previous week.
Investment & trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance.
CapitalStars Investment Adviser: SEBI Registration Number: INA000001647