Bullions counter may remain on positive path as yellow metal is poised for a second straight weekly gain.
Bullions counter may remain on positive path as yellow metal is poised for a second straight weekly gain, helped by diminished chances of U.S. interest rate hikes this year after a data-filled week that concludes with the pivotal jobs report later in the day. The yellow metal can move in range of 59150-59450 while silver also can move in range of 74800-76500. U.S. consumer spending increased by the most in six months in July, but slowing monthly inflation rates cemented expectations that the Federal Reserve would keep interest rates unchanged next month. Atlanta Fed President Raphael Bostic laid out a case on Thursday against any further U.S. interest rate hikes, saying monetary policy is already tight enough to bring inflation back down to 2% over a “reasonable” period.
In base metal counter, Copper can move higher as it can move in range of 736-743. China, a significant consumer of copper, saw its manufacturing activity contract for the fifth consecutive month in August. This string of weak economic data has put pressure on metals prices, including copper. The global refined copper market shifted from a deficit to a surplus of 213,000 metric tons in the first half of 2023 compared to the same period last year. This change was reported by the International Copper Study Group (ICSG) and is a result of factors such as increased output in China and the Democratic Republic of Congo, even as production declined elsewhere. Zinc may remain on sideways path as it can move in range of 216-220. Aluminum can move in range of 200-205.
Crude oil may move on firm path as it can move in range of 6800-7000. Oil prices were set to snap a two-week losing streak as they rose for a fourth consecutive session on Friday due to tightening supplies and expectations of the OPEC+ group of oil producers extending output cuts to the end of the year. U.S. crude inventories fell by a more-than-expected 10.6 million barrels last week. Commercial crude oil inventories have plunged by 34 million barrels since the middle of July. Chinese factory activity returning to expansion and the government stepping up efforts to support its housing market also helped boost oil prices on Friday, on hope such action could help stimulate demand growth in the world’s second-largest oil consumer. Natural gas prices may trade mixed in range of 220-240.
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