Bullions counter may trade higher as the dollar weakened as investors looked to gauge the pace of rate hikes by the U.S. Federal Reserve. Gold (Feb) can move in range of 53550-54000 while silver (Mar) can move towards 64000-66300.
Bullions counter may trade higher as the dollar weakened as investors looked to gauge the pace of rate hikes by the U.S. Federal Reserve. Gold (Feb) can move in range of 53550-54000 while silver (Mar) can move towards 64000-66300. Fed fund futures are now pricing in a 91% chance of 50-basis point (bps) rate increase in the December meeting. The November Consumer Price Index (CPI) data will be released on Dec. 13 and final Fed meeting of 2022 is scheduled on Dec. 13-14. High interest rates have weighed on gold’s traditional status as a hedge against inflation and other uncertainties this year, as they translate into higher opportunity cost of holding the non-yielding metal.
In base metal counter, Copper can move on volatile path as it can move in range of 695-705. On the fundamentals, copper inventory across China stood at 899,600 mt in November, down 3,700 mt from the expected 903,300 mt. A smelter began its maintenance ahead of schedule due to equipment problems, and the overall supply of blister copper and copper scrap was still relatively tight, which limited the new copper output in November. Zinc may move on upside path as it can test 282 while taking support near 270. Aluminum can move on upside path in range of 210-218. Aluminium inventory remained low, with little possibility of large accumulation in the near future. Smelters in Gansu and Inner Mongolia continued to resume production.
ENERGY: Crude oil may trade on mixed path as weekly inventory data later today to give further direction to the prices. Overall it can move in range of 6000-6350. Recently oil fell to their lowest settlement levels this year as economic uncertainty and the prospect of higher interest rates pressured prices. Service-sector activity in China has hit a six-month low, and European economies have slowed due to the high cost of energy and rising interest rates. Data released on Monday showing US services industry activity unexpectedly picked up in November and last week’s robust US payrolls report raised doubts about how soon the Fed might ease monetary policy. Natural gas prices may witness lower level buying as it can test 485 while taking support near 440.
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