AHMEDABAD (Commodity Online): Industrial Metals traded with the negative node due to US and Euro zone economical uncertain outlook.
The disparity seems to be attributed to the focus on the outcome of the Federal Open Market Committee policy meeting, with hopes for further stimulus translating into renewed demand for Gold and Silver as an alternative store of value.
Bearish sentiment improved a little in the market. But on Wednesday, base metals dropped on profit booking after opened slightly higher in morning trades.
FOMC said Tuesday that it would announce the measures of “selling short-term bonds and buying long-term bonds” to lower long-term interest rates after the two-day monetary policy meeting.
According to Amrita Mashar, analyst with Commodity Online, market players are looking forward to monetary policies; especially loose monetary policies would increase US Dollar liquidity and firmness in base metals. Base metals trend expected to clear after FOMC meeting announcement till than prices will remain range bound.
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