Bullion to trade upside; Base metals may remain sideways
MUMBAI-INDIA (Aug 22) Bullion counter may continue its upside momentum continuing yesterday gains as significant drop in local currency rupee Vs Dollar which has crossed 64 today may lend support to the prices. Gold can move in range of 30900-31400 MCX. Silver can move in range of 50000-52000 in MCX. Gold declined from a two-month high in New York amid concern that the Federal Reserve will slow the pace of stimulus, crimping demand for the precious metal as a store of value.
Base Metals: Base metal complex may remain sideways with upside bias but profit booking at higher levels cannot be denied. Copper may trade in range of 462-480 in MCX. Lead may trade in range of 139-145 while zinc may trade in range of 123-125 in near term. Aluminum may remain in range of 118-123.
Copper futures posted the biggest drop in almost three weeks as concern that the Federal Reserve will scale back U.S. monetary stimulus clouded prospects for metal demand. Minutes of July’s Fed policy meeting, due on Aug. 21, may give details of deliberations on reducing bond purchases that were intended to boost the U.S. economy.