FOMC Statement Due to Be Released Tonight, Gold MCX Trade Sideways

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FOMC Statement Due to Be Released Tonight, Gold MCX Trade Sideways

Gold Silver Reports ~ European markets are trading higher today owing to less than expected gain in oil stocks. Asian markets are trading mixed and the US stock futures are trading in the green.    

Spot gold prices are trading flat today at $1231/oz while MCX gold prices are also trading flat at Rs.29039 per 10 gms. Gold slid for a fourth consecutive session on Wednesday, hovering near its lowest in two weeks although investors were waiting for the outcome of the Federal Reserve policy meeting. The Federal Open Market Committee (FOMC) began its two-day meeting on Tuesday and it is likely to issue a statement late tonight.

LME Copper prices are trading higher by 0.3 percent at $4958/tonne as Chinese Premier Li Keqiang said that the economy was facing difficulties but not in danger of a hard landing, fanning hopes its slow revival may gain steam. Also, decline in LME stocks acted as a positive factor. However, strength in the DX ahead of the FOMC statement weighed on dollar denominated metals. MCX Copper prices are trading higher by 0.1 percent at Rs.336.2/kg. WTI oil prices are trading higher today by 1.7 percent at $36.96 per barrel, while MCX oil prices are trading higher by 1.26 percent at Rs.2488 per barrel.

Oil prices edged up on Wednesday on an upcoming meeting in Qatar to discuss an output freeze and on expectations of U.S. production declines, but markets are warned that neither the freeze nor the declines point to the end of a global supply glut.

Investors in the precious metals market are also keeping a watch on the US Federal Reserve meeting scheduled on March 15- 16th that will provide clues about further rate hikes. Gold prices will trade sideways today.

Bargain hunting at lower levels and the EIA inventory due tonight will be the crucial factor for further oil prices trajectory.

LME Copper prices are expected to trade lower today as investors will be cautious ahead of FOMC statement due to be released tonight.   ~ Neal Bhai Reports