Bullions counter may continue its weakens further as the U.S. dollar firmed after stronger-than-expected jobs data fanned concerns that the Federal Reserve might keep hiking interest rates. Gold can move in range of 56750-57200 while Silver also can move in range of 67000-68400.
Bullions counter may continue its weakens further as the U.S. dollar firmed after stronger-than-expected jobs data fanned concerns that the Federal Reserve might keep hiking interest rates. Gold can move in range of 56750-57200 while Silver also can move in range of 67000-68400. Data on Friday showed U.S. job growth accelerated sharply last month, with nonfarm payrolls surging by 517,000 jobs – well above an estimate of 185,000. The unemployment rate hit more than a 53-1/2-year low of 3.4%.Interest-rate futures traders moved after Friday’s job report to price in a further interest-rate increase in May, which would bring the policy rate to the 5%-5.25% range, and are now expecting eventual Fed rate cuts to start in November versus in September previously. Physical gold demand in India ticked up last week, as jewellers resumed purchases after staying away for a couple of weeks hoping for an import duty cut in the government budget amid the wedding season.
In base metal counter, Copper can trade on mixed path as it can move in range of 765-785. On the macro front, the U.S. Department of Labor announced last week that the non-farm sector added far more jobs than expected in January, and unemployment rate also fell, both supporting the US dollar. This weighed down copper prices. Copper inventories across mainstream areas in China increased 33,800 mt on Friday February 3 from Monday January 31, 86,600 mt above the same period last year. The main cause are increased shipments from smelters and poor downstream purchases. At present, the domestic market sees oversupply. Zinc may trade with sideways path as it can move in range of 280-285. Aluminum can remain in range of 220-226. The China aluminium production declined in January and may drop further amid expectations for production cuts in Yunnan.
ENERGY: Crude oil may dip further as it can test 6000 while taking resistance near 6150. Oil prices fell around 8% last week to more than three-week lows as jitters over major economies outweighed signs of a demand recovery in China, the world’s top oil importer. Last Friday, WTI and Brent slid 3% after strong U.S. jobs data raised concerns that the Federal Reserve would keep raising interest rates, which in turn boosted the dollar. While recession fears dominated the market last week, on Sunday International Energy Agency (IEA) Executive Director Fatih Birol highlighted that China’s recovery remains a key driver for oil prices. The IEA expects half of global oil demand growth this year will come from China, where Birol said jet fuel demand was surging. Natural gas prices can witness some bounce back as it can move range of 195-215.
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