Bullion counter can continue to trade on weak bias on surge in dollar index as strong U.S. jobs data last week cemented the view that the Federal Reserve would continue its policy of aggressive interest rate hikes. Gold can test 51300 while taking resistance near 51900 while Silver can move towards 59000 while taking resistance near 61000.
Bullion counter can continue to trade on weak bias on surge in dollar index as strong U.S. jobs data last week cemented the view that the Federal Reserve would continue its policy of aggressive interest rate hikes. Gold can test 51300 while taking resistance near 51900 while Silver can move towards 59000 while taking resistance near 61000. U.S. job growth slowed moderately in September while the unemployment rate dropped to 3.5%, pointing to a tight labour market, which keeps the Fed on its aggressive monetary policy tightening campaign for a while. Holdings of SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund, fell 0.21% to 944.31 tonnes on Friday.
In base metal counter, Copper can trade with weak bias as it can move in range of 642-657. Data released by the London Metal Exchange (LME) showed that, after LME copper inventory fell to a new low of 102,000 mt in more than five months on September 16, the inventory has been on an upward trend. The latest figure was 143,775 mt, a four-month high. Zinc may dip further as it can test 267 while taking resistance near 282 in MCX. Europe’s energy crisis is taking a rising toll on the region’s industrial capacity with another zinc smelter going into care and maintenance. Aluminum can trade with weak bias as it can move in range of 200-205 in MCX.
Crude oil may witness some profit booking after last week rally as OPEC+ production targets and ahead of the European Union embargo on Russian oil. Overall it can move in range of 7450-7650. Brent and WTI posted their biggest percentage gains since March last week after the Organization of the Petroleum Exporting Countries and allies including Russia, known as OPEC+, agreed to lower their output target by 2 million barrels per day. The OPEC+ production cuts, which come ahead of a European Union embargo on Russian oil, will squeeze supply in an already tight market. EU sanctions on Russian crude and oil products will take effect in December and February, respectively. Natural gas prices may remain in red as it can move in range of 540-570 in MCX.
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