Bullions counter hovered near one-month lows as markets assessed the cooler-than-expected U.S. inflation data, with bullion still set to wrap up its worst week in seven as the U.S. dollar and bond yields stood strong. Gold can move in range of 58600-59100 while silver also can move in range of 69000-70500.
Bullions counter hovered near one-month lows as markets assessed the cooler-than-expected U.S. inflation data, with bullion still set to wrap up its worst week in seven as the U.S. dollar and bond yields stood strong. Gold can move in range of 58600-59100 while silver also can move in range of 69000-70500. The U.S. consumer price index (CPI) gained 0.2% last month, matching June’s increase. Following the data, traders bet that U.S. Federal Reserve policymakers are unlikely to raise interest rates again in 2023 and will probably start cutting them early next year. San Francisco Fed Bank Mary Daly said that while recent inflation data is moving in the right direction, more progress is needed before she would feel comfortable the Fed has done enough.
In base metal counter, Copper can trade on weaker path as it can move in range of 725-733. On the macro front, the latest inflation report released by the U.S. Department of Labor showed that due to the fall in commodity prices, the U.S. CPI rose by 3.2% year-on-year in July without seasonal adjustment. In addition, after US President Biden signed an executive order on “investment restrictions in China”, British Prime Minister Sunak considered following Biden to restrict technology investment in China. Zinc may remain on sideways path as it can move in range of 226-224. Aluminum can move in range of 198-204. Russian aluminium giant Rusal reported a 75% drop in its first-half net profit on Friday as production costs surged owing to dwindling raw material resources, high inflationary pressures and international sanctions on Russia. Rusal, one of the world’s top aluminium producers, posted a net profit of $420 million in the six months ended June 30, compared with $1.68 billion a year earlier.
ENERGY: Crude oil may witness further profit booking as it may move in range of 6750-6950. Oil prices were largely unchanged in Asian morning trade as investors weighed optimistic demand forecasts from the OPEC producer group against mixed economic data in top importer China. The Organization of the Petroleum Exporting Countries said on Thursday it expects world oil demand to rise by 2.25 million barrels per day (bpd) in 2024, compared with growth of 2.44 million bpd in 2023. Both forecasts were unchanged from last month. Market sentiment was also lifted by Thursday’s U.S. consumer prices data for July, which fuelled speculation the Federal Reserve is nearing the end of its aggressive rate hike cycle. On the supply side, prices have been supported by extensions to output cuts by Saudi Arabia and Russia, alongside supply fears driven by the potential for conflict between Russia and Ukraine to disrpupt Russian oil shipments in the Black Sea region. Natural gas prices may tad lower as it may move in range of 225-235.
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