Bullions counter may remain on positive path as supported by a slight pullback in the dollar and prospects that the U.S. Federal Reserve would take a pause from interest rate hikes this year.
Bullions counter may remain on positive path as supported by a slight pullback in the dollar and prospects that the U.S. Federal Reserve would take a pause from interest rate hikes this year. US markets are closed today due to Labour Day holiday. Yellow metal can move in range of 59400-59700 while silver also can move in range of 74500-76000. Data on Friday showed U.S. job growth picked up in August, but the unemployment rate jumped to 3.8% and wage gains moderated, strengthening the case of an interest rate pause this month. According to the CME Fed Watch tool, traders now see a 93% chance of the Fed leaving rates unchanged at its September meeting. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.10% on Friday.
In base metal counter, Copper can trade in red as it can move in range of 735-745. According to data released by the US Department of Labour last Friday, the US initial jobless claims stood at 187,000 in August, lower than market expectations. The unemployment rate surged to 3.8% in August, up from 3.5% in July. Zinc may remain on sideways path as it can move in range of 218-223. Aluminum can move in range of 200-205. In the fundamentals, the proportion of molten aluminum output remained high and the continuous low level of aluminum ingot inventory brought support to aluminum prices. Entering into the traditional peak seasons of September and October, there are certain optimistic expectations on the consumer side.
Crude oil may move on firm path as it can move in range of 7000-7150. Oil prices ticked up as market sentiment was buoyed by positive China and U.S. economic data, as well as expectations of ongoing crude supply cuts from major producers. On the demand side, China’s manufacturing activity unexpectedly expanded in August, data from Caixin’s manufacturing PMI survey indicated, leading to renewed optimism about the economic health of the world’s largest oil importer. Expectations of tightening oil supplies have grown after Russian Deputy Prime Minister Alexander Novak’s remarks on Thursday that Russia had agreed with partners in the Organization of the Petroleum Exporting Countries (OPEC) on the parameters for continued export cuts. An official announcement with details of the planned cuts is expected this week. Russia has already said it will cut exports by 300,000 barrels per day (bpd) in September, following a 500,000 bpd cut in August. Saudi Arabia is also expected to roll over a voluntary 1 million bpd cut into October. Natural gas prices may trade lower in range of 215-230.
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