Bullions counter may trade on weaker path on stronger dollar index as some investors stayed on the sidelines ahead of U.S. jobs data that could influence the Federal Reserve’s monetary policy path. Gold can move in range of 54600-55300 while silver also can move in range of 61000-62300.
Bullions counter may trade on weaker path on stronger dollar index as some investors stayed on the sidelines ahead of U.S. jobs data that could influence the Federal Reserve’s monetary policy path. Gold can move in range of 54600-55300 while silver also can move in range of 61000-62300. Fed Chair Powell on Wednesday reaffirmed his message of higher and potentially faster interest rate hikes, but emphasized that debate was still underway with a decision hinging on data to be issued before the U.S. central bank’s policy meeting in two weeks. Following Powell’s remarks, markets are now pricing in a 50-basis point hike at the Fed’s March 21-22 policy meeting. The dollar index firmed near a three-month high scaled, making bullion less affordable for buyers holding other currencies.
In base metal counter, Copper can trade on weaker path as it can move in range of 742-755. On the macro front, Federal Reserve Chairman Powell expressed the possibility of a faster and higher rate hike path. Investors paid more attention to Friday’s employment data, and the dollar remained stable. In south China, the inventory has dropped significantly due to the recovery of consumption, and the overall trading improved. Zinc may trade with sideways path as it can move in range of 258-268. Aluminum can trade weaker path as it can move in range of 203-209. After aluminium smelters in Yunnan have completed production cuts, the market attention will focus more on the recovery of domestic consumption and overseas interest rate hikes. Given the high social inventory, aluminium prices will hover sideways before the US Fed announces its interest rate decision.
ENERGY: Crude oil may trade on subdued path as it can move in range of 6230-6360. Oil prices were near flat on Thursday, as a larger-than-expected draw in U.S. crude stocks contended with worries that more aggressive U.S. interest rate rises would strain economic growth and therefore dent oil consumption. On Tuesday, oil futures fell more than 3% and posted their largest daily fall since early January after comments by U.S. Federal Reserve Chair Jerome Powell that the central bank would likely need to raise interest rates more than expected in response to recent strong data. U.S. crude stocks fell 1.7 million barrels last week, government data showed, compared with analyst estimates for a build of 395,000. Industry data late Tuesday showed a decline in crude inventories for the first time after a 10-week build. U.S. gasoline stocks drew down by 1.1 million barrels, according to official data, less than the 1.8 million forecast, adding to demand concerns. Distillate inventory grew by 138,000 barrels, compared with expectations for a 1-million-barrel drawdown. Natural gas prices can witness lower level buying as it can test 220 while taking support near 210.
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