Bullions counter may remain on firm path as gold prices hovered near record highs seen in 2020, trading steady above the key $2,000 level on Wednesday, as the dollar eased after weak U.S. economic data fanned expectations that the Federal Reserve might loosen its monetary policy trajectory. Gold can move in range of 60850-61200 while silver also can move in range of 74000-76000.
Bullions counter may remain on firm path as gold prices hovered near record highs seen in 2020, trading steady above the key $2,000 level on Wednesday, as the dollar eased after weak U.S. economic data fanned expectations that the Federal Reserve might loosen its monetary policy trajectory. Gold can move in range of 60850-61200 while silver also can move in range of 74000-76000. Gold prices rallied 2% to hit their highest in more than a year on Tuesday after another round of weaker U.S. economic data indicated a slowing economy and strengthened expectations of a less-aggressive Fed policy. Data showed U.S. job openings in February dropped to the lowest level in nearly two years, suggesting the labor market was cooling. A separate report showed new orders for U.S.-manufactured goods fell for a second straight month in February.
In base metal counter, Copper can witness some profit booking as it can move in range of 760-770. Copper prices traded sideways in thin trade as Chinese markets were closed for a holiday, with a soft dollar supporting the metal even as weak U.S. data raised demand concerns. The U.S. dollar was stuck near two-month lows as data suggested cooling in the U.S. labour market, bolstering views that the Federal Reserve is near the end of its monetary tightening cycle. Zinc may trade in range of 245-256. Aluminum can trade on weaker path as it can move in range of 204-209.
ENERGY: Crude oil may remain on upbeat note as it can move in range of 6500-6800. Oil prices rose in early Asian trade on Wednesday on anticipated U.S. crude inventory declines and OPEC+’s latest output cut targets. Helping boost oil prices was an industry report showing that U.S. crude stocks fell by about 4.3 million barrels in the week ended March 31, according to market sources citing American Petroleum Institute figures on Tuesday. The latest targets set by the Organization of Petroleum Exporting Countries (OPEC) and allies including Russia, a group known as OPEC+, also helped oil prices. The OPEC+ plan would bring the total volume of cuts by the group to 3.66 million bpd, including a 2 million-barrel cut last October, equal to about 3.7% of global demand. Keeping oil prices from moving higher were concerns about demand, with U.S. job openings in February falling to the lowest level in nearly two years and U.S. manufacturing activity in March slumping. Weak manufacturing activity in China last month also added to crude oil demand concerns. Natural gas prices can trade lower as it can move in range of 165-185.
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