Aluminium yesterday traded with the positive node and settled 0.13% up at 114.20 as support seen China's December CPI was up 2.5% YoY, a 7-month high, dashing hopes for monetary policy easing in the short term. The trade deficit in the US was USD 48.73 billion in November, its highest since March 2012. The higher-than-expected reading dampened expectations Beijing will introduce fresh monetary easing measures in the near-term to prop up the world's second largest economy. Loose monetary policies employed by central banks in the US, Europe and China have helped boost demand for gold in recent years as investors sought the precious metal as a hedge against currency debasement. Market players will also be awaiting data from China on fourth quarter gross domestic product for signs of a recovery in the world's second-largest economy. In the week ahead, gold traders are expected to remain focused on the outlook for Federal Reserve monetary policy, as well as political developments in the US, with negotiations on raising the US debt ceiling still to come in February. In yesterday's trading session aluminium has touched the low of 114 after opening at 114.1, and finally settled at 114.2. For today's session market is looking to take support at 114, a break below could see a test of 113.9 and where as resistance is now likely to be seen at
114.3, a move above could see prices testing 114.5.

Trading Ideas:

Aluminium trading range for the day is 113.87-114.47.

Aluminium settled flat after China's December CPI was up 2.5% YoY, dashing hopes for monetary policy easing.

The trade deficit in the US was USD 48.73 billion in November, its highest since March 2012.

Aluminium weekly stocks at Shanghai exchange came down by 1272 tonnes