Bullion counter may trade in green on expectations the U.S. Federal Reserve will hold off on further interest rate hikes. Risks to the U.S. economic recovery, no end in sight to a partial government shutdown and volatile stock markets have made several Federal Reserve officials call for patience before raising interest rates again. Gold can find support near 32150 and can climb towards 32500. Silver can find support near 39300 and can recover towards 39750. Meanwhile, British Prime Minister Theresa May’s government won a vote of no confidence on Wednesday, with 325 votes versus 306, meaning that May will now press ahead to find a consensus over how to proceed with Britain’s departure from the European Union, after her proposed deal was rejected by parliament. sian shares crept higher on Thursday as upbeat bank earnings bolstered Wall Street, while an anticlimactic end to the latest chapter in the Brexit saga gave sterling a moment’s peace.
Base metals prices may remain buoyant on China stimulus measures to revive its economy. China’s central bank said it will make big cash injection through open market operations on Thursday, following its biggest-ever net liquidity injection a day earlier. The People’s Bank of China (PBOC) is injecting 250 billion yuan ($37 billion) through seven-day reverse bond repurchase agreements and 150 billion yuan through 28-day reverse repos, traders said. Copper may face resistance near 425 while it has key support 418 in MCX. London copper prices rose for a third straight session on Thursday as China’s move to inject liquidity into the financial system boosted expectations of higher demand in the world’s top industrial metals consumer. Zinc can move sideways as it can face resistance near 180 while it has support near 175. Lead can take support near 137 and can face resistance near 141. Nickel can take witness further recovery as it can test 830. Nickel bears have been sent running for cover by this week’s ferocious squeeze on the London Metal Exchange (LME). Short-dated time-spreads have flexed out to levels not seen in many years as a long-running decline in LME nickel stocks translates into cash-date tightness. Aluminium can test 132 levels while taking support near 130 levels.
Crude oil may open in red as oil prices inched down on Thursday, with traders worried about the strength of demand in the United States after gasoline stockpiles there grew last week by far more than analysts had expected. The U.S. Energy Information Administration (EIA) said in a report on Wednesday that crude production rose last week to a record 11.9 million barrels per day (bpd), as crude exports jumped close to all-time highs near 3 million bpd. However, gasoline stockpiles climbed 7.5 million barrels. At 255.6 million barrels, gasoline stocks were at their highest weekly level since February, 2017. Crude oil can test 3750 levels taking support near 3660. Natural gas may witness profit booking at higher levels as it can test 238 in MCX. U.S. utilities likely withdrew a mere 82 billion cubic feet (bcf) of natural gas from storage last week as warmer-than-normal weather caused a dip in heating demand while production held near record levels.
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