Bullion counter may continue its upside momentum as gold held firm on Friday near nine-month highs touched in the previous session on the back of a pause in U.S. interest rate hikes, although optimism about a Sino-U.S. trade deal boosted risk appetite, capping gains. The Federal Reserve held U.S. interest rates steady on Wednesday but said it would be patient in lifting borrowing costs further this year as it pointed to rising uncertainty about the economic outlook. Gold tends to rise on expectations of lower interest rates, which reduce the opportunity cost of holding non-yielding bullion, hurting the demand for the U.S. dollar in which the metal is priced. The number of Americans filing applications for unemployment benefits surged to near a 1-1/2-year high last week, which could raise concerns that the labor market is slowing. Gold (Apr) can test 33250 taking support near 32850. Silver can test 40700 taking support near 40000. The market is now looking to Friday’s U.S. non-farm payrolls report for January, with economists surveyed by Reuters forecasting job gains of 165,000, down from 312,000 in December.
Base metals prices may trade with positive path. China’s industrial metals mostly went up on Friday ahead of the week-long national holiday, as expectations of progress in high-level trade talks between China and the United States shored up market sentiment. U.S. President Donald Trump said on Thursday he will meet with Chinese President Xi Jinping soon to try to seal a comprehensive trade deal as Trump and his top trade negotiator both cited substantial progress in two days of high-level talks. Copper may trade on stronger path as it can test 442 while taking support near 432 in MCX. World top copper miner Codelco said on Thursday it had struck a contract deal with the union of supervisors at its Gabriela Mistral mine in northern Chile, averting the threat of a strike. Zinc can move sideways to positive path as it can test 197. Lead can also trade higher as it can test 155.
Crude oil may trade sideways as oil prices held steady on Friday, torn between hopes the United States and China could soon settle their trade disputes and new data raising fresh concerns over China’s economic slowdown. Crude oil can test 3940 levels while taking support near 3840. Oil futures received support from a broader financial market rally, which saw Asian shares hit four-month highs on Friday on hopes the United States and China could strike a trade deal. In Venezuela, meanwhile, U.S. sanctions imposed on state oil firm PDVSA this week are keeping tankers stuck at ports and are expected to accelerate the supply drop in February. In Venezuela, meanwhile, U.S. sanctions imposed on state oil firm PDVSA this week are keeping tankers stuck at ports and are expected to accelerate the supply drop in February.