Bullions counter may trade on subdued path as gold prices eased on Friday as investors keenly look forward to the U.S. non-farm payrolls report due later in the day to assess the likely path of the Federal Reserve’s rate-tightening cycle. Gold can move in range of 55000-55500 while silver also can move in range of 60800-62000.
Bullions counter may trade on subdued path as gold prices eased on Friday as investors keenly look forward to the U.S. non-farm payrolls report due later in the day to assess the likely path of the Federal Reserve’s rate-tightening cycle. Gold can move in range of 55000-55500 while silver also can move in range of 60800-62000. Earlier this week, Fed Chair Jerome Powell warned of higher and potentially faster interest rate hikes to contain high inflation. Higher interest rates to control rising prices discourage investment in non-yielding gold. Gold had jumped more than 1% on Thursday after data showed the number of Americans filing new claims for unemployment benefits last week increased by the most in five months, spurring hopes that a softening labor market could pave the way for less-aggressive rate hikes from the Fed.
In base metal counter, Copper can trade on weaker path as it can move in range of 740-755. In terms of fundamentals, downstream stockpiling in east China continued to improve, and the supply of available cargoes was relatively tight as the delivery of the SHFE front-month copper contract nears. The market expected spot premiums to remain after the delivery. Zinc may trade with sideways path as it can move in range of 252-264. Aluminum can trade on weaker path as it can move in range of 202-207. Recently, the Federal Reserve has frequently made hawkish statements, putting the prices of non-ferrous metals under pressure. It is necessary to continue to pay attention to the US inflation data.
ENERGY: Crude oil may trade on subdued path as it can move in range of 6100-6250. Oil prices were little changed as traders remained cautious about frequent and steeper rate hikes by the U.S. Federal Reserve, concerns that have triggered a rout in energy prices over the last three days. U.S. Federal Reserve Chair Jerome Powell has warned of higher and potentially faster rate hikes, saying the Fed was wrong in initially thinking inflation was “transitory” and was surprised by the strength of the labour market. Expectations of ongoing rate hikes in the world’s largest oil producing country and similar remarks over the weekend by the European Central Bank President have cast a shadow over global growth, setting oil up for a weekly fall after two straight weeks of gains. Natural gas prices can remain under selling pressure as it can test 190 while taking resistance near 215.
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