Bullion counter may open on positive note Gold rose to its highest level in nearly two weeks on Wednesday, after regaining the key $1,300 level in prior session, buoyed by safe haven demand from Brexit chaos and a fall in dollar after a softer U.S. data. U.S. consumer prices rose for the first time in four months in February, but the pace of the increase was modest, resulting in the smallest annual gain in nearly 2-1/2 years. British lawmakers crushed Prime Minister Theresa May’s European Union divorce deal on Tuesday, thrusting Britain deeper into crisis and forcing parliament to decide within days whether to back a no-deal Brexit or seek a last-minute delay. The European Union will not negotiate Brexit again, it said on Tuesday, after Britain’s parliament rejected the divorce package for a second time in a vote that made a chaotic no-deal scenario more likely. Gold can take support near 32000 and can recover towards 32260. Silver can take support near 38400 and can recover towards 39000.
Base metals prices may trade with sideways bias. Copper may take support near 445 and can recover towards 458 in MCX. Zinc can take support near 195 while facing resistance near 200. London zinc prices struck an eight-month high in early Asian trade on Wednesday, as investors worried about ultra-tight stocks, before giving up gains to trade slightly lower. The most-traded May zinc contract on the Shanghai Futures Exchange climbed as much as 2.5 percent to 21,980 yuan ($3,277.91) a tonne, the highest since April 2, 2018, before trimming gains to 2 percent. The premium of cash zinc over the three-month LME contract stood at $52 a tonne on Tuesday, the highest since Jan. 7, underscoring tight near-term supply for physical metal. Lead can move in range of 143-146. Nickel can also test 920 while taking support near 900. Aluminum prices may trade in range of 143-146. The United States is working on a plan to lift tariffs from Mexican and Canadian steel and aluminum but preserve the gains that domestic producers have received from the duties so far, U.S. Trade Representative Robert Lighthizer said on Tuesday.
Crude oil may open on positive bias as it may trade in range of 3950-4030 in MCX. Oil prices edged higher on Wednesday, supported by planned cuts to Saudi exports and a reduced forecast for U.S crude output. U.S. crude oil production is expected to grow slower than previously expected in 2019 and average about 12.30 million barrels per day (bpd) the U.S. Energy Information Administration (EIA) said on Tuesday. Saudi Arabia plans to cut its crude oil exports in April to below 7 million barrels per day (bpd), while keeping its output well below 10 million bpd, a Saudi official said on Monday, as the kingdom seeks to drain a supply glut and support oil prices. Natural gas may remain sideways as it can take support near 192 while taking facing resistance near 200 in MCX. U.S. natural gas futures held near a two-week low on Tuesday as forecasts for warmer weather than previously expected offset increased flows to liquefied natural gas (LNG) export terminals.
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