Trading strategies for Brent crude and zinc by Tradebulls Securities

Gold and Silver saw sharp fall on Tuesday as market was caught by surprise after Treasury Secretary Janet Yellen conceded that interest rates may have to rise in order to contain inflation. These comments came after 48 hours where she downplayed rising inflation pressure thus creating confusion. The comments prompted US dollar to soar while precious metals saw sharp fall.

The way US economic recovery is gaining pace, market is now factoring that ultra loose monetary policy may not remain same in foreseeable future and interest rate rising may come next year. Physical demand in India has also taken hit after severe second wave of Covid with many states imposing restrictions and lockdown. Premium for physical gold has eroded and now is trading in discount of $2.