During the previous week in the COMEX market, prices of all the base metals such as Aluminum, Copper, Iron Ore, Lead and zinc rallied as the bulls made a comeback in the commodity markets. Iron Ore rose 7.1%, Copper, Aluminum and Zinc rose by more than 3.5%, and Lead rose 2.5% as compared to the previous week’s close. As for precious metals Gold and Silver are concerned, both inched higher during the week, with Gold rising by 0.5% and silver rising by 2.0%, closing the week at $1,818.00 and $27.07 respectively. Crude oil moved up by 4% during the week on the hope that the economic recovery will result in higher oil demand.
Gold and silver prices rose 2.2% and 4.2% respectively on Tuesday, supported by optimism on further clues from the US Federal Reserve regarding the interest rates. Investors also awaited clarity on the COVID relief bill that is in process, US-China trade talks and rising US-Iran tensions. However, the precious metals lost all its gains by the end of the week, weighed by a stronger US dollar and higher US bond yields. In Indian MCX markets, the upside movement in gold and silver has been capped by optimistic view by the Reserve Bank of India in its latest monetary policy meeting regarding the India economy.
For the current week, investors needs to keep an eye on economic data such as Eurozone’s Industrial production and Trade Balance on 15th Feb, Eurozone’s Flash GDP on 16th Feb, UK’s core CPI, US’ core retail sales, core PPI, Industrial Production, FOMC Meeting minutes on 17th Feb, ECB Monetary Policy Meeting Accounts, US’ Unemployment Claims, Philly Fed Manufacturing Index, Crude Oil Inventories on 18th Feb, UK’s retail sales, Eurozone’s, UK’s and US’ Flash Services and Manufacturing PMI on 19th Feb. For the upcoming week, the correction in gold prices could help boost physical gold demand in India. Gold may continue to reflect trend in US dollar with focus on global virus situation as well as US stimulus and central bank monetary policy stance. We expect gold in COMEX market to be in the range of $1,739 to $1,897, while silver is expected to be in the range of $22.7 to $31.4. Whereas, for bullion market traders, we assume gold futures to trade in the range of 45,236 to 51,183.
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