Bullions counter may trade on weaker path as the dollar firmed, with a fresh set of global economic data cementing investor worries that global interest rates would stay higher for longer than expected. Gold can move in range of 55600-56000 while silver also can move in range of 64000-65000.
Bullions counter may trade on weaker path as the dollar firmed, with a fresh set of global economic data cementing investor worries that global interest rates would stay higher for longer than expected. Gold can move in range of 55600-56000 while silver also can move in range of 64000-65000. Although considered a hedge against inflation, higher interest rates to tame rising prices increase the opportunity cost of holding non-yielding bullion. Data on Wednesday showed U.S. manufacturing contracted for a fourth straight month in February, but there were signs that factory activity was starting to stabilise, with a measure of new orders pulling back from a more than 2-1/2-year low. Fed policymakers will provide updated projections on the rate path and economy at the end of their March 21-22 meeting. Money markets expect the Fed’s target rate to peak at 5.485% in September.
In base metal counter, Copper can trade on weaker path as it can move in range of 760-780. Domestic commodity prices rose on the back of strong manufacturing data. In east China, some traders restocked for March as copper prices returned to around 70,000 yuan/mt. Zinc may trade with sideways path as it can move in range of 270-280. Aluminum can trade weaker path as it can move in range of 210-215. On the macro front, SHFE aluminium rebounded amid the exciting Chinese manufacturing PMI reading. On the fundamentals, the short-term supply side will remain stable as the aluminium capacity resumption in Sichuan and Guizhou has been rather slow. On the demand side, downstream purchases picked up after aluminium prices rebounded. The consumption recovery and inventory change are of concerns in the follow-up stage.
ENERGY: Crude oil may trade on upside path as it can move in range of 6380-6500. Oil prices extending gains from the previous two sessions on signs of a strong economic rebound in China, the world’s top oil importer, which offset worries about a rise in U.S. crude inventories. U.S. crude inventories rose by 1.2 million barrels in the week ending Feb. 24 to 480.2 million barrels, their highest level since May 2021, the Energy Information Administration reported. Meanwhile, crude oil processed by Indian refiners reached record levels in January as the country boosted imports of Russian barrels that Western countries shunned. Natural gas prices can continue its recovery as it can move towards 245 while taking support near 220.
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