Spot Gold prices traded sideways till 5.00 pm IST as a temporary bounce back in the Euro is providing support to bullion prices. Further, Gold is trading near its 100‐Day Moving Average, a key support level. Hence, at these levels, shorts shall book profits whereas risk‐takers might go long with a Stop‐loss below $1070. Movement in the dollar is crucial for the yellow metal as we witnessed that prices came under pressure on the back of a stronger dollar. The dollar could rebound if the currency strengthens on the back of risk aversion in the financial markets. A stronger dollar could exert pressure on gold prices. Copper prices fell during the morning session on the back of weak global markets, enhanced risk‐aversion amongst the investors and with Chinese commodity market players lightening their positions ahead of the Chinese New Year, beginning from 14th February. Inventories of copper on the LME gained +1575 tonnes. The red metal will take cues from economic data announcements, movement in the dollar and inventory rise or gain. Overall prices could face downside pressure as 1) stronger dollar, 2) mixed economic data and 3) Chinese lending norms being tightened could weigh on prices. Crude Oil prices traded in the positive territory today, taking support from yesterday’s bullish crude inventory data. But prices could come under pressure in the later part of the trade if the dollar strengthens. As such fundamentals in the case of crude oil remain bearish as China is expected to continue to tighten its monetary policy over the next six months. The move by China to limit credit and raise reserve requirements for banks could lead downside pressure as China is the world’s second‐largest energy consumer. . Outlook The US is expected to announce economic data on Unemployment Claims, Durable Goods Orders along with Natural Gas Inventory today. The movement in the dollar will be determined by the data announcement. Overall, the trend for the dollar remains positive with the Dollar index trading above the 78 mark. Crude oil prices could come under pressure as demand concerns persists. Copper prices could trade with a negative bias if the dollar strengthens and leads to selling pressure in the commodity. Gold prices too could come under pressure if unable to trade above $1096 levels in the evening session.

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