MCX Copper expected to trade between 456-470.4 levels
Natural Gas under long liquidation; Support seen at 196.9
MCX Crude Oil likely to trade in a range between 3932-4176
MCX Silver expected to trade in a range between 39394-40422
MCX Gold likely to trade in a range between 33007-33757
Technically market is getting support at 196.3 and below same could see a test of 194.7 levels and resistance is now likely to be seen at 198.9, a move above could see prices testing 199.9.
Zinc on MCX settled up 0.53% at 197.95 gained on short covering as support seen after LME Zinc stocks dropped towards the lowest since 2007. Stocks of zinc under LME warrant at 67,825 tonnes are at their lowest since 2007, while cancelled warrants at more than 22 percent are significant.
Meanwhile the US dollar rebounded on Wednesday as investors digested testimonies from the lead US trade negotiator with China and the top ranking Federal Reserve official.
Also Fed Chair Jerome Powell finished his second day of testimony in front of the House Financial Services Committee. In a prepared statement, Powell told lawmakers Tuesday that while the US economy looks “healthy” and the outlook is “favorable,” there are some worrying signs on the horizon.
US Trade Representative Robert Lighthizer also spoke Wednesday, saying in front of the House Ways and Means Committee that US issues with China are “too serious” to be resolved by promises of more purchases of US goods by Beijing.
The US trade deficit in goods jumped in December amid a surge in imports, a move that could cause fourth-quarter economic growth estimates to be lowered, according an advanced look from the Census Bureau on Wednesday.
Now a day ahead economic data slated for release today include China’s official manufacturing PMI for February, Germany’s CPI for February, the US’ weekly jobless claims, PCE price index, GDP and consumer spending for the fourth quarter as well as Chicago PMI for February. The US-North Korean summit in Hanoi would be another key thing to watch today.
–Zinc trading range for the day is 194.7-199.9.
–Zinc prices trading in range as seasonal supply pressure in China sustained.
–LME zinc inventories and extended losses in the greenback, limiting the downside.
–Federal Reserve Chairman Jerome Powell reiterated that the central bank would stay patient on monetary policy.
Courtesy: Kedia Commodities