Golden Investment Research (P) Limited
Bullions:
Bullion counter can trade in range as strong local currency has capped the upside to greater extent. Gold can trade in range of 27,400-27,700 while silver can trade in range of 51,800-53,000 in near term. Fitch Ratings does not expect to cut France`s triple-A credit rating this year, while countries under review such as Italy or Spain could be downgraded by one or two notches. The gold market has in recent weeks acted more like a risk asset and followed the raw commodity market pack in closer fashion but gold can also benefit as safe-haven asset during times of keener uncertainty in the market place.
Base metals may trade in volatile fashion amid mixed sentiments. Copper may also trade in thin range of 396-406. London copper fell on Wednesday for a second day in three, as euro zone funding concerns outweighed optimism that China`s demand for the industrial metal will remain strong after record imports in December. Copper is more vulnerable to price spikes than other metals because of a large buildup of short positions by money managers, which could lead to short-covering rallies on a change in market sentiment. Workers at a Freeport McMoran Copper & Gold Inc Indonesian mine on Tuesday halted their gradual return to work one day after gunmen shot two contractors dead on the road to the Grasberg mine.
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