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* Gold headed for a weekly gain in a market dominated by the Federal Reserve’s strongest indication yet that it will pivot to easing monetary policy next year. Furthermore, a drop in US Treasury bond yields and the dollar index bolstered bullion prices. The dollar dropped to a four-month low, while the 10-year US government bond yield has fallen below 4%, reaching its lowest level since August.

* Meanwhile, the ECB kept interest rates on hold Thursday for a second meeting with inflation tumbling but said it would step up its exit from its pandemic-era stimulus. The Bank of England also held interest rates at a 15-year high, sticking with its message that borrowing costs will remain elevated for some time despite growing bets on a wave of cuts next year.

* Crude oil was poised to eke out its first weekly gain in almost two months after dovish signals from the Federal Reserve on Wednesday unleashed a bullish pulse across markets. Copper and other base metals rose on Friday after China stepped up support for the economy.

* The People’s Bank of China injected a record amount of cash via one-year policy loans as it sought to support an economy suffering from a property market crisis and weak demand.

BULLION

Gold

Trading Strategy:

We believe Comex Gold needs to cross-resistance at $2045 and sustain above this level for the continuation of its bullish momentum; otherwise, it may retreat from this resistance. It has support at $2009/$1997 for the day. MCX gold February future has resistance at Rs 62850 and Rs 63300. It has support at Rs 62080 and Rs 61600.

Silver

Trading Strategy:

Comex Silver has resistance at $24.36 and $24.70. It has support at $23.75 and $23.40. The price is expected to trade in the range of 23.75 to 24.70 in the short term with a positive bias. The MCX Silver Mar future has resistance at 75600/76300 and support at 73515/72980.

Crude Oil

Trading Strategy:

We anticipate that crude oil is expected to trade in a broader range with a moderately positive bias. MCX Crude Oil December future has support at 5905/5850 and resistance at 6070/6180. NYMEX WTI crude has support at $71.05/$69.35 and resistance at $72.80/$74.0.

Natural Gas

Trading Strategy:

Natural gas closed with a modest gain in the previous session. We expect that until the price holds above the 187 level, a recovery is likely to be seen in natural gas. It has static resistance at 205.80/214.60 and support at 187/180.80. Buy natural gas at 197.80 TGT 209.0 SL 193.0.

Base Metal 

Copper

Trading Strategy:

MCX Copper Dec future broke resistance of 727 and settled above this level. We expect bullish momentum to continue in copper; it has the next resistance at 733.80. Above this level, the price can rally towards 737/742 levels. It has support at 721.80/717.0

Zinc

Trading Strategy:

Zinc December future is expected to trade in the range of 219.5 to 226.0 for the day. A move above the 226 level opens further up the side towards the 229.0 level. Buy Zinc December future at 222.0 TGT 226.0 and keep stop loss at 219.80.

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