Gold prices-Gold traded narrowly higher in Asia on Tuesday with investors largely on the sidelines ahead of this week's Federal Reserve meeting widely expected to hike interest rates. On the Comex division of the New York Mercantile Exchange, gold for February delivery inched 0.08% up to $1,064.20 a troy ounce. Gold likely gained support at $1,046.20, the low from Dec.3. Along with Wednesday's rate hike decision, the FOMC will also release its quarterly economic projection for the next several years. The projection includes forecasts for U.S. GDP, civilian unemployment and the PCE Price Index, as well as estimates on the timing of its next change in the Federal Funds Rate
MCX Copper Tips-LME copper will move between USD 4,655-4,705/mt during Asian trading hours Tuesday. Markets will focus on December’s ZEW economic sentiment from euro zone and Europe, and US December’s CPI and NY Empire State manufacturing index on Tuesday. Even UK November’s year-on-year CPI turns out to be upbeat, this will not support the Bank of England (BOE) to raise interest rate. And the Vice President of the BOE also showed his disagreement on rate hike currently unless growth on salaries hit the inflation target. Should December’s ZEW economic sentiment from euro this will boost for base metals prices.
Crude oil prices-Crude oil prices in Asia on Tuesday failed to hold gains from the U.S. as investors continued to monitor massive over supply. In 2016, the Paris-based IEA expects that global demand will grow by 1.2 million barrels per day, down from its 2015 expectations for growth of 1.8 million bpd. In addition, the IEA expects non-OPEC production to decrease by 600,000 bpd in 2016, as high-priced U.S. shale producers continue to struggle to keep pace with OPEC powers such as Saudi Arabia, which can afford to drill at lower prices with abundant supplies in reserve.
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