Bullions counter may trade on mixed path .Yellow metal firmed after a slower-than-expected U.S. job growth data knocked the dollar and bond yields off their recent highs, as investors brace for this week’s inflation test that could influence the Federal Reserve’s policy path. Gold can move in range of 59300-59600 while silver also can move in range of 71500-73000.
Bullions counter may trade on mixed path .Yellow metal firmed after a slower-than-expected U.S. job growth data knocked the dollar and bond yields off their recent highs, as investors brace for this week’s inflation test that could influence the Federal Reserve’s policy path. Gold can move in range of 59300-59600 while silver also can move in range of 71500-73000. The U.S. dollar index fell and benchmark 10-year Treasury yields slid from November highs after the Labor Department’s employment report on Friday showed the U.S. economy added fewer jobs than expected in July. The new evidence that the labor market is cooling, added to the case that the U.S. central bank’s recent interest rate hike could be the last of its current tightening cycle. Premiums on physical gold in China hit a near five-month peak last week on strong retail demand in the top consumer, while a weaker rupee offset the impact of a retreat in local prices in India.
In base metal counter, Copper can trade on negative path as it can move in range of 735-745. Chile’s state-owned mining company, Codelco, adjusted its output projections downward by 70,000 tonnes to a range of 1.31-1.35 million tonnes for the current year. This revision was attributed to explosions and delays in key mines. The adjustment followed a report indicating that Codelco’s production had plummeted by 14% in the first half of 2023. Copper inventories in warehouses monitored by the Shanghai Futures Exchange fell 14.9 % from last Friday, the exchange said. Zinc may remain on sideways path as it can move in range of 218-225. Aluminum can move in range of 199-204.
ENERGY: Crude oil may trade on upside path as it may move in range of 6800-6920. Oil prices extended gains to touch their highest levels since mid-April after top producers Saudi Arabia and Russia pledged to keep supplies down for another month to tighten global markets further and support prices. Several factors have underpinned prices in recent weeks including expectations of U.S. interest rate hikes tapering off, a reduction in OPEC+ supplies and hopes of stimulus boosting oil demand recovery in the world’s top crude importer China after a dismal second quarter. The world’s top exporter Saudi Arabia on Thursday extended its voluntary production cut of 1 million barrels per day (bpd) to the end of September, adding that it could be extended beyond then or deepened. The kingdom’s production for September will be around 9 million bpd. Natural gas prices may move further higher as it may move in range of 210-225.
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