Crude oil may witness some bounce back at lower levels as Russian President Vladimir Putin's threat to halt the country's oil and gas exports if price caps are imposed by European buyers can lift the prices higher. It can move towards 6800 in MCX while taking support near 6550.
Bullion counter may continue to extend bounce back as investors awaited the European Central Bank’s rate action due later in the day. Gold (Oct) can recover towards 50700 while taking resistance near 50400 in domestic markets. Silver (Dec) can recover towards 55500 while taking support near 53500. Fed officials said on Wednesday they still aren’t convinced the worst of the U.S. inflation scare has passed, incomments that teed up a continuation of the central bank’s aggressive interest rate increases. Focus will be on the European Central Bank meeting, where the central bank is widely expected to raise interest rates by 75 basis points on Thursday to fight runaway inflation.
Base metal counter may remain downbeat as Copper can dip towards 635 while taking resistance near 645. On the macro front, the US Fed officials said on Wednesday that the worst period of US inflation did not pass, and the hawkish remarks enabled the Fed to raise the interest rates aggressively. Zinc may dip towards 275 while taking resistance near 290 in MCX. Aluminum can plunge towards 195 in MCX. China domestic aluminium output rose 8.16% YoY to 3.49 million mt in August. Despite power shortages in Yunnan, this has not yet led to substantial production reductions in the aluminium supply side.
Crude oil may witness some bounce back at lower levels as Russian President Vladimir Putin’s threat to halt the country’s oil and gas exports if price caps are imposed by European buyers can lift the prices higher. It can move towards 6800 in MCX while taking support near 6550. Elsewhere, reacting to soaring energy prices, Britain’s new Prime Minister Liz Truss will on Thursday scrap the country’s fracking ban and will seek to make more use of its reserves in the North Sea. Russia’s Gazprom has already halted flows from the Nord Stream 1 pipeline, cutting off a substantial percentage of supply to Europe. Natural gas prices can continue to dip lower as it can test 615 while taking resistance near 650 in MCX. The European Union’s executive body has proposed capping the price of Russian gas.
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