Bullions counter may trade on volatile path as investors will focus on the U.S. Federal Reserve outlook on future pace of interest rate hikes as the central bank’s policy meeting concludes later in the day. It is widely expected that the Fed will raise its benchmark overnight interest rate by 75 basis points, the fourth such increase in a row. Gold can move in range of 50300-50600 while Silver can move in range of 58000-60000.
Bullions counter may trade on volatile path as investors will focus on the U.S. Federal Reserve outlook on future pace of interest rate hikes as the central bank’s policy meeting concludes later in the day. It is widely expected that the Fed will raise its benchmark overnight interest rate by 75 basis points, the fourth such increase in a row. Gold can move in range of 50300-50600 while Silver can move in range of 58000-60000. U.S. job openings unexpectedly rose in September, suggesting demand for labour remained strong, providing evidence that rapid interest rate hikes have yet to bite hard in the real economy. Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.16% to 919.12 tonnes on Tuesday from 920.57 tonnes on Monday.
In base metal counter, Copper can trade with upside bias as it can move towards 667 while taking support near 655. On the fundamentals, LME copper inventories have fallen for 7 consecutive days and dipped another 6,700 mt to 106,425 mt yesterday. At present, the global visible copper cathode inventory remains low, offering support for copper futures prices. In terms of spot, the premiums dropped, but the copper prices were still high. Zinc may remain trade on upside bias as it can test 250 while taking resistance near 262. Aluminum can move sideways in range of 195-205. From the supply side, due to factors such as the advent of the heating season and the poor profitability caused by low aluminium prices, some aluminium smelters in Chinese Henan province plan to reduce production, involving an annual production capacity of about 110,000 mt.
Crude oil may remain on firm path as it can move in range of 7300-7500. Oil prices rose as industry data showed a surprise drop in U.S. crude stockpiles, suggesting demand is holding up despite steep interest rate hikes dampening global growth. American Petroleum Institute showed crude stocks fell by about 6.5 million barrels for the week ended Oct. 28, according to market sources. China’s zero-COVID policy has been a key factor in keeping a lid on oil prices as repeated lockdowns have slowed growth and pared oil demand in the world’s second largest economy. Natural gas prices remain sideways in range of 475-495.
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