Bullions counter may witness profit booking at higher levels as gold prices witnessed sharp sell-off in the previous session, as traders digested rate-hike remarks from global central banks, but the metal was set for its first weekly drop in seven amid a strong dollar. Today outcome of US nonfarm payroll data can give further direction to the prices. Gold can move in range of 57600-58000 while Silver also can move in range of 69600-70600.
Bullions counter may witness profit booking at higher levels as gold prices witnessed sharp sell-off in the previous session, as traders digested rate-hike remarks from global central banks, but the metal was set for its first weekly drop in seven amid a strong dollar. Today outcome of US nonfarm payroll data can give further direction to the prices. Gold can move in range of 57600-58000 while Silver also can move in range of 69600-70600. Gold prices have gained about $300 since November on expectations of softer rate hikes from the U.S. central bank, as a lower interest rate environment reduces the opportunity cost of holding non-yielding bullion. Following the Fed’s 25 basis-point rate increase after a year of larger hikes, both the ECB and the BoE raised their interest rates by 50 basis points as expected on Thursday.
In base metal counter, Copper can trade on mixed path as it can move in range of 775-785. On the macro front, the European Central Bank raised interest rates by 50 basis points as expected, while the Bank of England adopted a more dovish tone on inflation. The US dollar rose against a basket of currencies and the US dollar index rose overnight. Copper prices are expected to remain range bound as the market awaiting a signal of consumption recovery. Zinc may trade with sideways path as it can move in range of 290-298. Aluminum can remain in range of 222-229. Optimism over consumption recovery is expected to continue to support aluminium.
ENERGY: Crude oil may trade on weaker path as it can test 6150 while taking resistance near 6350. Oil prices were heading for a second straight week of losses, as the market looked for more signs of a strong recovery in fuel demand in China to offset looming slumps in other major economies. Mixed signs of a fuel demand recovery in China, the world’s top oil importer, have kept a lid on the market. The prospect of an economic rebound in China after COVID-19 curbs eased has buoyed the oil market so far this year, along with a weaker dollar that makes the commodity cheaper for those holding other currencies. The dollar has fallen because aggressive interest rate hikes by the U.S. Federal Reserve are no longer expected, whereas other major economies are continuing with bigger rate increases even as inflation has eased. Natural gas prices can remain under pressure as it can move range of 190-220.
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