Bullions counter may remain on weaker path as investors awaited more cues on the health of the U.S. economy ahead of the Federal Reserve’s meeting this month .
DAILY MARKET NEWS AND OUTLOOK
Bullions counter may remain on weaker path as investors awaited more cues on the health of the U.S. economy ahead of the Federal Reserve’s meeting this month amid rising expectations for a pause in interest rate hikes. Yellow metal can move in range of 59200-59600 while silver also can move in range of 73800-75000. Investor morale in the euro zone fell more than expected at the start of September as Germany’s economic weakness remained a major drag on the region, a survey showed on Monday. Central banks across major developed and emerging economies took a breather in August with the pace and scale of interest rate hikes shifting another gear lower as diverging growth outlooks and inflation risks muddied the outlook ahead.
In base metal counter, Copper can trade in red as it can move in range of 732-745. Copper prices fell on Tuesday, weighed down by rising inventories in exchange warehouses and concerns about demand amid subdued economic data from top consumer China. Inventories of copper in LME-registered warehouses rose to 107,425 tons, the highest since October 2022, with most deliveries in August going into warehouses in the United States, South Korea and Taiwan. China’s services activity expanded at the slowest pace in eight months in August, re-emphasising slowing activities throughout the world’s second-largest economy and biggest metals consumer, despite stimulus efforts to revive consumption. Zinc may remain on sideways path as it can move in range of 217-223. Aluminum can move in range of 198-204.
Crude oil may move on firm path on news of output cuts by Saudi Arabia and Russia as it can move in range of 7000-7200. Saudi Arabia is widely expected to extend voluntary oil cuts into October and Russia will unveil a new OPEC+ supply cut deal this week, according to its deputy prime minister. In Japan, the world’s third biggest economy, household spending in July fell 5.0% from a year earlier, deeper than a forecast decline of 2.5% and continuing into a fifth month of falls. Moscow has already announced it will cut exports by 300,000 barrels per day (bpd) in September, following a 500,000 bpd cut in August. Riyadh is also expected to roll over a voluntary 1 million bpd cut into October. Natural gas prices may trade on weaker path as it can move in range of 214-225. Natural Gas ekes out more losses as European gas futures are sinking lower by nearly 5%, while US gas futures are trying to keep losses contained. The supply side is starting to see a bottle neck with several gas fields in Norway suddenly halting production in unforseen maintenance.
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