Bullions counter may continue its upside momentum as the U.S. dollar weakened slightly after more Chinese cities relaxed COVID-19 restrictions over the weekend. Gold (Feb) can test 54300 while taking support near 54000 while silver (Mar) can move towards 68000 while taking support near 67000.
Bullions counter may continue its upside momentum as the U.S. dollar weakened slightly after more Chinese cities relaxed COVID-19 restrictions over the weekend. Gold (Feb) can test 54300 while taking support near 54000 while silver (Mar) can move towards 68000 while taking support near 67000. Data released on Friday showed U.S. employers hired more workers than expected in November and increased wages, shrugging off mounting worries of a recession, but that will probably not stop the Federal Reserve from slowing the pace of its interest rate hikes starting this month. Market participants are pricing in a 91% chance of a 50-basis point rate hike at the Fed’s meeting this month.
In base metal counter, Copper can move on volatile path as it can move in range of 680-705. On the macro front, the number of new jobs created in the US in November far exceeded expectations and wages also increased. The market began to doubt the expected slow pace of rate hikes. Zinc may move on upside path as it can test 285 while taking support near 270. Aluminum can move on upside path in range of 211-219. The optimisation of domestic pandemic controls may drive downstream consumption to recover a certain extent. Favorable real estate policies will also boost the demand for aluminium in the construction sector.
ENERGY: Crude oil may remain on firm path after OPEC+ nations held their output targets steady ahead of a European Union ban and a price cap kicking in on Russian crude. Overall it can test 6700 while taking support near 6500. The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, together called OPEC+, agreed on Sunday to stick to their October plan to cut output by 2 million barrels per day (bpd) from November through 2023. A key factor that has weighed on demand is China’s zero-COVID policy, but that appears to be easing now after protests were followed by several cities, including Beijing and Shanghai, relaxing restrictions to varying degrees. Natural gas prices may tad further lower as it can test 460 while facing resistance near 500. It fell on predictions that the weather over the next two weeks won’t be as cold as originally expected.
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