Bullion counter may trade on mixed path as gold prices were steady on Tuesday, pressured by a firm dollar on the back of concerns over slowing global growth, but well supported by expectations the U.S. Federal Reserve could refrain from raising interest rates this year. Also fanning fears was a fall in euro zone industrial output in November, which confirmed a series of weak national data that has raised concerns about the bloc’s growth in the final quarter of the year. Gold can find support near 32000 and can climb towards 32300. Silver can find support near 39300 and can recover towards 39700. 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.
Base metals prices may witness some short covering as metals traded in LME can get some support from U.S. President Donald Trump’s comments on reaching a trade deal with China. Trump on Monday predicted Washington would reach a deal with China to end a tit-for-tat trade war, saying Beijing wants to negotiate and that talks are going well. Copper may recover towards 418 while taking support near 410 in MCX. Zinc can move sideways as it can face resistance near 179 while it has support near 173. Lead can take support near 138 and can face resistance near 143. Nickel can take witness further recovery as it can test 820. Aluminium can face resistance near 131 levels and can slip lower towards 126 levels.
Crude oil may open in green as oil prices rose 1 percent on Tuesday amid supply cuts led by producer club OPEC and Russia, although a darkening economic outlook capped gains. The impact of OPEC+ (OPEC and others including Russia) cuts, Iran sanctions and lower month-on-month growth in U.S. production should help to support oil prices from current levels. The Middle East-dominated producer club of the Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC allies, including Russia, agreed in late 2018 to cut supply to rein in a global glut. Crude oil can test 3710 levels taking support near 3600. Meanwhile, the United States last November re-imposed sanctions against Iran’s oil exports. Although Washington granted sanctions waivers to Iran’s biggest oil customers, mostly in Asia, the Middle Eastern country’s exports have plummeted since.
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