Bullions counter may trade on firm path on slight weaker dollar index as investors are awaiting U.S. Federal Reserve Chair Jerome Powell’s testimony to Congress on Tuesday and Wednesday, and the February payrolls report on Friday for monetary policy clues. Gold can move in range of 55650-56100 while silver also can move in range of 64200-65200.
Bullions counter may trade on firm path on slight weaker dollar index as investors are awaiting U.S. Federal Reserve Chair Jerome Powell’s testimony to Congress on Tuesday and Wednesday, and the February payrolls report on Friday for monetary policy clues. Gold can move in range of 55650-56100 while silver also can move in range of 64200-65200. San Francisco Fed President Mary Daly said on Saturday if data on inflation and the labour market continued to come in hotter than expected, interest rates would need to go higher, and stay there longer. Richmond Fed President Thomas Barkin said on Friday he could see U.S. rates in the 5.5%-5.75% range. Underlying inflation in the euro zone will stay high in the near term, so a 50 basis-point rate increase later this month is increasingly certain, European Central Bank President Christine Lagarde said.
In base metal counter, Copper can trade on weaker path as it can move in range of 755-765. In terms of consumption, the peak season in March has seen a recovery in demand. But high copper prices are still one of the factors hampering consumption recovery. If copper prices do not rise sharply, consumption is expected to continue to recover. Zinc may trade with sideways path as it can move in range of 265-273. Aluminum can trade weaker path as it can move in range of 206-212. Fears of interest rate hikes in Europe and the US will continue to put pressure on the commodity market, but Chinese economic recovery will support aluminium prices. Last Friday, the US ISM non-manufacturing PMI for February recorded 55.1, higher than the expected 54.5. The final value of the US Markit services PMI exceeded expectations and recorded 50.6, beating the expected 50.5.
ENERGY: Crude oil may trade on upside path as it can move in range of 6420-6560. China set a lower-than-expected target for economic growth this year at around 5%, and as investors cautiously awaited U.S. Federal Reserve Chair Jerome Powell’s testimony this week. Both crude benchmarks settled more than $1 higher on Friday as a report that the United Arab Emirates was considering leaving OPEC was inaccurate. Oil prices are likely to be impacted by rate hikes across the world as global central banks tighten policy over fears of increasing inflation. Traders have started factoring in rate hikes across the world, but are hoping for smaller increases than last year. Natural gas prices can tad lower as it can test 218 taking resistance near 230.
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