Bullions counter can continue to trade higher as yellow metal prices advanced to an eight-month high on Monday, as a weaker dollar made greenback-priced bullion cheaper for overseas buyers while hopes of less-aggressive U.S. rate hikes also lifted sentiment. Gold can move in range of 55700-56200 while Silver also can move in range of 69200-70500.
Bullions counter can continue to trade higher as yellow metal prices advanced to an eight-month high on Monday, as a weaker dollar made greenback-priced bullion cheaper for overseas buyers while hopes of less-aggressive U.S. rate hikes also lifted sentiment. Gold can move in range of 55700-56200 while Silver also can move in range of 69200-70500. Data showed on Friday that the U.S. economy added jobs at a solid clip in December, but Fed officials could draw some solace from a moderation in wage gains. Also, U.S. services industry activity contracted in December for the first time in more than 2-1/2 years amid weakening demand, offering more evidence that inflation was abating. Market participants will now turn to Fed Chair Jerome Powell’s speech at a central bank conference in Stockholm on Tuesday and U.S. consumer price index data due on Thursday.
In base metal counter, Copper can trade on upside bias as it can move in range of 735-750. Smelters in north China ramped up the shipments to the east owing to the poor local consumption. A large number of terminal enterprises have begun their Chinese New Year holiday, and processing enterprises also plan to take their holidays this week. It is expected that the demand will show a downward trend before the Chinese New Year. Zinc may move on mixed path as it can move in range of 270-280. Aluminum can trade sideways in range of 203-208. The current macro impact on aluminium prices is limited. The drastic drop in aluminium prices last week was mainly due to poor fundamentals and sharp increase in social inventory. Aluminium prices are now close to smelters’ costs.
ENERGY: Crude oil may trade in green as it can test 6250 while taking support near 6130 in MCX. Oil prices edged up on Monday, a day after travellers streamed into China following a reopening of borders that lifted the fuel demand outlook and partly offset concerns of global recession. In China, some 2 billion trips are expected during the Lunar New Year season, nearly double last year’s movement and recovering to 70% of 2019 levels. However, concerns remain that the massive flow of travellers may cause another surge in infections and cap recovery in China’s economic activity. Last week, U.S. energy firms cut the number of operating oil and natural gas rigs by seven, the biggest weekly decline since September 2021, energy services firm Baker Hughes Co said on Friday. Natural gas prices can witness some bounce back as it can move in range of 305-340.
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