Bullions counter may trade on firm path on softer greenback as today US nonfarm payroll data will give further direction to the prices. Bullion was headed for a second straight weekly drop as the U.S. Federal Reserve’s hawkish policy narrative clouded outlook for the non-yielding asset. Gold can move in range of 50200-50500 while Silver can move in range of 58000-59300.
Bullions counter may trade on firm path on softer greenback as today US nonfarm payroll data will give further direction to the prices. Bullion was headed for a second straight weekly drop as the U.S. Federal Reserve’s hawkish policy narrative clouded outlook for the non-yielding asset. Gold can move in range of 50200-50500 while Silver can move in range of 58000-59300. The Fed raised interest rates by 75 basis points on Wednesday and Chair Jerome Powell pledged to “keep at” their battle to beat down inflation. Meanwhile, data released on Thursday showed that the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, suggesting the labour market remains strong despite slowing domestic demand.
In base metal counter, Copper can trade with upside path as it can move towards 665 while taking support near 650. On the fundamentals, LME copper inventories fell for 9 consecutive days yesterday, down 8,250 mt to 93,975 mt. In China, inventories in the south also declined slightly. The low inventories at home and abroad supported the copper prices. Copper prices still stood high despite the previous small drops. The domestic pandemic has not improved significantly, thus downstream demand remained sluggish. Zinc may open higher as it can move in range of 253-262. Aluminum can move sideways in range of 200-204. From the supply side, some aluminium smelters in Henan province reduced production. In addition, the release of new capacity and resumption of idled capacity are slow, thus the supply pressure has somewhat eased.
Crude oil may remain under pressure amid fears U.S. interest rates will go higher than previously expected and fresh concerns that COVID outbreaks will dent fuel demand in China. Overall it can move in range of 7250-7460. Fears of a recession in the United States, the world’s biggest oil consumer, grew on Thursday after Federal Reserve Chairman Jerome Powell said it was “very premature” to be thinking about pausing interest rate hikes. With softer demand in China, Saudi Arabia lowered December official selling prices (OSPs) for its flagship Arab Light crude to Asia by 40 cents to a premium of $5.45 a barrel versus the Oman/Dubai average. Natural gas prices trade on volatile path as it can move in range of 485-505.
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