7:34 PM
Nifty Tips
Bullion Metals
Gold bounced back from its intra-day low of $1350/oz levels to current levels of $1359/oz as the dollar index retreated from its session highs ahead of FOMC decision later today. Silver also edged higher to $24.90/oz. The dollar index fell in European hours after UK’s PMI Services data posted better-than-expected reading and
European equities also traded in greener pastures. MCX gold and silver also recouped from their respective session lows. Today, there is heavy retail buying expected for bullions in India as the nation embraces its
biggest gold buying festival, ”Dhanteras.” However, this may not have much impact as stockists have already bought the yellow metal earlier to gear up for today’s activities. The Fed’s announcement pertaining to quantitative easing and interest rate is keeping potential buyers on sidelines which may lead to sideways trading. However, economic reports later today may show an improvement in U.S. factory orders, ISM on-manufacturing composite index and ADP employment change
which may prove to be some momentary triggers for the markets before the Fed announces its monetary policy decisions.
Base Metals
Base metal prices are trading higher on the back of weak dollar index and positive equity markets. Most of the Asian equity markets closed higher, Hang Seng was the top gainer and closed higher by 2 percent. European equity markets also continue to trade in green. PMI data from UK came in better than expected and thereby
supported prices. In the evening, ADP employment data is expected to report job additions. Factory orders and ISM Non- manufacturing data is also expected to come in higher, thereby giving positive indication for prices. In the late hours, FOMC will also announce its policy decision but market will be reacting to that tomorrow. Overall, we expect base metals to continue to remain on the higher side.
Courtesy - Carvy comtrade
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