Bullions counter may trade with upside path as yellow metal touch their highest in more than nine months after the Federal Reserve raised interest rates by an expected 25 basis points and Chair Jerome Powell’s comments were read as dovish by the market. Gold can move in range of 58300-58700 while Silver also can move in range of 70800-71600.
Bullions counter may trade with upside path as yellow metal touch their highest in more than nine months after the Federal Reserve raised interest rates by an expected 25 basis points and Chair Jerome Powell’s comments were read as dovish by the market. Gold can move in range of 58300-58700 while Silver also can move in range of 70800-71600. The Fed delivered a quarter-percentage-point rate increase on Wednesday after a year of larger hikes. However, Powell warned of further monetary policy tightening while noting the progress on disinflation, which he said was in its early stages. Meanwhile, the Bank of England and the European Central Bank are expected to raise rates by 50 bps later in the day. The dollar index fell 0.3%. A weaker greenback makes dollar-priced bullion more attractive for buyers holding other currencies.
In base metal counter, Copper can trade on upside path as it can move in range of 782-794. Consumption has maintained a relatively stable growth entering 2023. From a structural point of view, the growth of service consumption is faster than that of goods consumption. The China PMI print in January is more intuitive, and the recovery of the manufacturing and service industries is relatively optimistic. In January, China’s manufacturing PMI was 50.1, with an estimate of 49.8 and a previous value of 47. In terms of fundamentals, low inventory and the seasonal low in the industry are also difficult to enable a complete reversal of copper prices. Zinc may trade with sideways to upside path as it can move in range of 290-300. Aluminum can remain in range of 226-230.
ENERGY: Crude oil may trade on firm path as it can test 6500 while taking support near 6250. Oil prices rebounded after tumbling in the previous session as a weaker dollar brought back some appetite for risk assets and the OPEC+ decision to roll over an output cut helped ease oversupply concerns. An OPEC+ panel endorsed the oil producer group’s current output policy at a meeting on Wednesday, leaving production cuts agreed last year in place amid hopes of higher Chinese demand and uncertain prospects for Russian supply. OPEC+ agreed to cut its production target by 2 million barrels per day (bpd), about 2% of world demand, from November last year until the end of 2023 to support the market. Natural gas prices can remain under pressure as it can move range of 190-220.
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