Bullions counter can trade in narrow range with lack of any clues as US markets are closed due to new year holiday. Gold prices were headed for a second straight yearly loss as aggressive rate hikes by the U.S. Federal Reserve dented the non-yielding bullion’s appeal. Gold can move in range of 54800-55200 while Silver also can move in range of 69000-70000.
Bullions counter can trade in narrow range with lack of any clues as US markets are closed due to new year holiday. Gold prices were headed for a second straight yearly loss as aggressive rate hikes by the U.S. Federal Reserve dented the non-yielding bullion’s appeal. Gold can move in range of 54800-55200 while Silver also can move in range of 69000-70000. World Gold Council (WGC) data shows that while there’s been a rise in retail demand, central banks are hoarding gold at an extremely fast pace. A number of reports citing WGC data show that the central banks’ current demand for gold has risen at the fastest pace since 1967.
In base metal counter, Copper can trade sideways in range of 712-724. Zinc may move on mixed path as it can move in range of 264-272. Aluminum can in narrow range of 206-212. On the supply side, power rationing in Guizhou tends to escalate. The increase in domestic aluminium production may be lower than expected in December. On the demand side, the domestic downstream processing sectors are in the off-season, and new orders are insufficient, dragging down the operating rates this week. Aluminium ingot inventories have accumulated for two consecutive weeks, weakening support for aluminium prices.
ENERGY: Crude oil may trade on upside path as it can test 6700 while taking support near 6500 in MCX. Oil prices swung wildly in 2022, climbing on tight supplies amid the war in Ukraine, then sliding on weaker demand from top importer China and worries of an economic contraction. Prices surged in March as Russia’s invasion of Ukraine upended global crude flows, with international benchmark Brent reaching $139.13 a barrel, highest since 2008. Prices cooled rapidly in the second half as central banks hiked interest rates and fanned worries of recession. Investors in 2023 are expected to keep taking a cautious approach, wary of interest rate hikes and possible recessions. Natural gas prices can witness some short covering it can test 400 while taking support near 360.
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