Bullions counter may trade on sideways path as the prices rose for the fourth straight session on Thursday as the dollar faltered, but bullion’s outlook remained cloudy as several U.S. Federal Reserve officials said more interest rate increases were needed to rein in inflation. Gold can move in range of 57000-57400 while Silver also can move in range of 67200-67800.
Bullions counter may trade on sideways path as the prices rose for the fourth straight session on Thursday as the dollar faltered, but bullion’s outlook remained cloudy as several U.S. Federal Reserve officials said more interest rate increases were needed to rein in inflation. Gold can move in range of 57000-57400 while Silver also can move in range of 67200-67800. Fed officials said on Wednesday more rate hikes are in the cards as the U.S. central bank pushes to cool inflation, with Fed Governor Christopher Waller saying while wage growth has slowed, the decline is “not enough” and that “the Fed will need to keep a tight stance of monetary policy for some time.” The U.S. Labor Department’s consumer price report will be keenly watched by investors for clues on the Fed’s future monetary policy stance.
In base metal counter, Copper can trade on firm path as it can move in range of 769-780. On the macro front, affected by Fed Chairman Powell’s dovish speech, the dollar was running at a relatively low level. The market is awaiting more economic data to predict the direction of interest rate hikes. In terms of fundamentals, Guangdong’s inventory has fallen for two consecutive days due to the obvious improvement in consumption, and it has now fallen below the 60,000 mt level. Zinc may trade with sideways path in range of 272-282. Aluminum can trade on weaker path in range of 215-220. On the supply side, the operating aluminium capacity fell to 40.1 million mt in early February, and the output is expected to be 3.07 million mt this month.
ENERGY: Crude oil may extend recent gains as it can test 6560 while taking support near 6440. Oil edged up in early trade, extending gains for a fourth consecutive day, as crude loading disruptions in Turkey and optimism over China’s recovering demand continued to buoy sentiment. BP Azerbaijan declared force majeure on Azeri crude shipments from the Turkish port of Ceyhan on Feb.7 after a massive earthquake struck Turkey and Syria early on Monday. The disaster had halted operations at Ceyhan and disrupted crude oil flows from Iraq and Azerbaijan. However, increasing crude inventories in the United States put pressure on oil gains. Stocks rose last week to their highest since June 2021 to 455.1 million barrels. Natural gas prices can witness lower level buying as it can move in range of 198-215.
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