GOLD

Gold moved higher overnight to open at 1264.00/1265.00. It touched a high of 1268.50/1269.50 generating "safe haven" interest following the ongoing financial crisis in emerging markets, particularly in Argentina, which dragged global equities lower. The metal then dropped to a low of 1261.00/1262.00 as investors geared up for the Fed's policy statement, before finally closing the session at 1262.00/1263.00. Following the close, the metal traded within range despite the Fed announcement of a further $10 billion cut to bring its monthly bond purchases down to $65 billion.

Gold gained as stock markets surrendered early gains to fall ahead of a policy statement from the Federal Reserve.

Fed said it would trim its bond purchases by another $10 billion as it stuck to a plan to wind down its extraordinary economic stimulus

SPDR gold trust holding gained by 2.10 tonnes i.e. 0.27% to 792.56 tonnes from 790.46 tonnes.

Commodity Contract: S2 S1 R1 R2 (Trading Tips)

Silver edged higher overnight to open at 19.70/19.75. After posting a high of 19.95/20.00, it declined steadily to close at the session low of 19.54/19.59.

Silver is also trading higher at 19.59. Silver continues to be trapped within a sideways range, with the range high being 20.64, and the range low being 18.84. There is also a downtrend on the daily chart which comes in at 20.17. 

The gold-silver ratio is trading lower today at current 64.15. This is the first lower close after six sessions higher. Resistance is at the 67.56 high. There is strong support from the daily uptrend which currently comes in at 61.38.

Silver rose as ongoing turbulence in emerging markets boosted the safe haven appeal of the precious metal.

Prices earlier seen pressure as market sentiment improved after Turkey's central bank announced aggressive rate hikes in an effort to stem the lira's decline.

The U.S. Federal Reserve announced a further reduction in its bond-buying stimulus.

Commodity Contract: S2 S1 R1 R2 (FREE Trail)

On the Comex division of the New York Mercantile Exchange, copper futures for March delivery hit a session high of USD3.268 a pound, before trimming gains to trade at USD3.262 during European morning trade, up 0.3%.

The March copper contract fell to USD3.246 a pound on Tuesday, the lowest since December 9, before paring losses to settle at USD3.253 a pound, down 0.18%.

Appetite for riskier assets improved after Turkey's central bank announced aggressive rate hikes overnight in an effort to stem the lira's decline.

Turkey's central bank raised its overnight lending rate to 12% from 7.75% and its repurchase rate to 10% from 4.5% in its first emergency meeting since 2011.

The move eased concerns over emerging markets, following a broad based selloff last Friday, triggered by worries over the impact of reduction in Fed stimulus

and concerns over a possible slowdown in China.

Copper futures edged mildly higher on Wednesday, as global markets rebounded after an aggressive rate hike by the Turkish central bank and ahead of a policy announcement by the Federal Reserve later in the day.

Commodity Contract: S2 S1 R1 R2 (Trading Signals)

On Wednesday, the New York-traded oil futures hit a session low of USD97.38 a barrel and a high of USD97.59 a barrel. The March contract settled at USD97.42 a barrel.

Nymex oil futures were likely to find support at USD95.22 a barrel, Monday's low, and resistance at USD97.65 a barrel, Tuesday's high.

Meanwhile on Wednesday, the U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories rose by 6.4 million barrels in the week ended Jan. 24, far beyond expectations for an increase of 2.3 million barrels, which sent prices falling by fanning fears the country remains awash in supply.

Total U.S. crude oil inventories stood at 357.6 million barrels as of last week.

The report also showed that total motor gasoline inventories decreased by 819,000 barrels compared to forecasts for a gain of 1.1 million barrels.

NYMEX crude oil prices rose during Asian trading hours on Thursday after Federal Reserve decided to cut USD10 billion from its USD75 billion monthly bond-buying program and U.S. supply data disappointed investors.

On the New York Mercantile Exchange, West Texas Intermediate crude for delivery in March traded at USD97.62 a barrel during Asian trading, up 0.26%

Commodity Contract: S2 S1 R1 R2 (Free Signals)

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