TODAY MARKET OUTLOOK FOR NATURAL GAS AND BULLION

Natural Gas: U.S. natural gas futures ended little changed on Wednesday as forecasts for continued weak heating demand offset declining production expectations and an early round of short covering after a price rout earlier in the week. In addition, traders noted the market held steady as they wait for the federal government to release a storage report expected to show utilities withdrew a near-normal 65 billion cubic feet of gas from inventories last week. Both the U.S. and European weather models forecast temperatures would remain well above normal through late December, keeping heating demand low. Thomson Reuters Analytics said it expected gas production in the lower 48 states to fall below year-ago levels on Wednesday for the seventh day in a row. Outlook: We expect Natural gas prices to trade sideways as weak demand could keep prices under pressure and short covering after slump in prices is likely to support the prices.

Gold: Failure to break below 25387 will see Gold prices consolidate between 25450—25400 levels and bounce back towards 25614/25700 levels again. Sustenance below 25387 will see prices weaken towards 25250/25150 levels. Any major upside is likely only on a daily close above 25800 levels.

Silver: Silver prices couldn't sustain at its intra day highs at 34799 levels yesterday. Any major downside in the counter is likely only if prices break down below 34150 levels decisively. Until then counter will find support between 34300—34150 zones. The counter will witness momentum only once prices trade above 34600. A daily close below 34150 will open downside targets of 33850/33600 levels for silver.