Bullion counter may trade with upside bias as gold prices inched up on Monday, supported by expectations that the U.S. Federal Reserve will not raise rates this year, but the yellow metal faced a strong technical resistance at $1,300, keeping the bullion range-bound for the past couple of weeks. Market participants think that worries of slowing domestic and global growth as well as tame U.S. inflation will make Fed policymakers hesitant to raise interest rates in the world’s largest economy. The central bank had the ability to be patient on monetary policy given stable price measures, U.S. Federal Reserve Chairman Jerome Powell said last week, and he downplayed predictions from policymakers suggesting interest rates would be raised twice more this year. Gold can find support near 31800 in MCX and can recover towards 32000.
Base metals prices may witness some lower level buying. Copper may recover towards 420 while taking support near 410 in MCX. China’s imports of copper fell 4.7 percent from month ago to 429,000 tonnes in December, data from the General Administration of Customs showed. Copper imports to China, the world’s leading copper and aluminium consumer, include anode, refined, alloy and semi-finished copper products. Zinc can move sideways as it can face resistance near 178 while it has support near 172. China’s refined zinc production saw its steepest plunge since 2013 last year amid tight raw material supply, longer maintenance periods and the relocation of the country’s top smelter, according to Antaike, the research arm of the China Nonferrous Metals Industry Association. Lead can take support near 138 and can face resistance near 143. Nickel can take witness further recovery as it can test 820.
Crude oil may witness profit booking at higher levels as Brent crude oil prices fell below $60 per barrel on Monday after Chinese data showed weakening imports and exports in the world’s biggest trading nation. In the United States, drillers cut four oil rigs in the week to Jan. 11, bringing the total count down to 873, energy services firm Baker Hughes said in a weekly report on Friday. Crude oil can face resistance near 3700 while it has support near 3600. China imported 43.78 million tonnes of crude oil in December, up 2.1 percent from 42.87 million tonnes in the previous month, according to data from China’s General Administration of Customs. Natural gas may strong path and can test 235 in MCX.
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