Gold at commodity market at the MCX witnessed a rise on the rumors which states that U.S. Federal Reserve might halt monetary tightening in the year 2019. As per Jerome Powell – U.S. Fed chairman, they are aware of the risks which are related to economic slowdown and that they will be patient with regards to the policy decisions.
It is opined that the investors had expected to tightening path after three hikes in the previous year. Given the ongoing trade war along with recent decline in corporate earnings, analysts have put the expectations to the minimal.
At the MCX, Silver prices were seen to be rising at 0.12 per cent at INR 39,221 per kg in futures trade. Analysts opine that the hike is witnessed because of global trend. Weakening of the dollar attributed to the rise in Silver prices.
Prices of Oil witnessed more than 1 percent given the talks between United States and China resumed. Also, supply cuts by major producers also aided the market sentiments.
At the Brent, crude futures stood at USD 57.75 per barrel which was up 69 cents. In the financial markets, we are riding rally at the expectation of face-to-face trade talks between delegates resuming talks from Beijing and Washington. Experts also opine that this would ease tension between the two biggest economies.
Consumption of the copper would witness a steady growth in the coming years. This would be driven by demand from the power industry, rise in the electric vehicle production together with positive global outlook.
It is being forecasted that base metal prices might be weak in the current time although hope of trade agreement with the US and China might uproot the market sentiments. Zinc could be on the path of recovery and might touch INR 175. Lead could take support near INR 134 together with facing resistance near INR 138. It is said that Nickel might also look at recovery as well and improve the prices at MCX.