COMMODITY ANALYSIS FOR TODAY 27 APRIL 2016

Gold :Gold rebounded on Tuesday after weaker-than-expected U.S. durable goods data knocked the dollar to a session low against the euro, but prices remained hemmed into a narrow range as a two-day Federal Reserve policy meeting began. The Fed, which will release its post-meeting statement at 2 p.m. EDT on Wednesday,is expected to hold interest rates steady, but traders will be watching for changes to its assessment of the U.S. economy, which could point to more rate increases later in the year. Economists expect a Fed increase in June, with another by year-end.

Outlook : We expect gold prices to trade negative on the back of strength in US dollar

Silver :Silver was up 0.5 percent at $17.07 an ounce.

Outlook: We expect silver prices to trade negative on the back of profit booking after sharp up-move in prices.

Crude Oil : Crude oil prices hit 2016 highs on Tuesday on the back of a rally in the gasoline market and after an industry group reported a surprise draw in U.S. crude stockpiles. Brent and U.S. crude's West Texas Intermediate (WTI) futures finished regular trading about 3 percent higher, riding on the coattails of a gasoline rally that hit August highs after a series of refinery hikes. In post-settlement trade, both benchmarks rose more than 4 percent after the American Petroleum Institute reported a drawdown of nearly 1.1 million barrels in U.S. crude inventories last week versus a 2.4 million-barrel build expected by analysts in a Reuters poll. Crude markets got off to a rousing start in the New York session as gasoline futures and gasoline refinery margins both surged from refinery outages, Venezuela buying and a reported drop in New York inventories.

Outlook : We expect Natural gas prices to trade sideways on the back of profit booking after sharp up-move in prices

Base Metals:  Copper prices fell on Tuesday in a sell-off fuelled by worries that expectations of stronger demand in top consumer China were overly optimistic, though a weaker dollar helped support prices. Traders are awaiting the outcome of a meeting of the U.S. Federal Reserve on Wednesday. It is expected to keep interest rates on hold, but markets will scrutinise the statement for clues as to the future direction of rates and the dollar. A lower U.S. currency makes dollar-denominated commodities cheaper for non-U.S. firms; a relationship used by funds which trade using buy or sell signals from numerical models.

Outlook: We expect base metal prices to trade mostly positive on the back of demand from China.