Precious Metals are trading in a sharp range ahead of the FED meeting scheduled for later in the night today. Both Gold and Silver are trading almost unchanged at 1734.30 and 33.14 respectively. We are p
ositive on bullions in the short term but if the FED refrains from announcing the third round of quantitative easing as the market expects, we may see a sharp sell off in most commodities. On the other hand, a fresh round of easing could carry prices higher over the short term. Base Metals are also trading range bound with most metals on LME trading higher by almost half a percent. Crude Oil is trading at 97.49, up 15 cents and Natural Gas is at 3.05, up 0.26% since morning. We are neutral on energy prices.
FOMC Statement and Funds Rate are set to be released at 10.00 pm, Economic Projections at 11.30 pm while Chairman Bernanke’s speech is scheduled at 11.45 pm.
Key Economic Releases : US Unemployment Claims, US PPI MoM and US Natural Gas Storage.
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