Bullion counter is expected to trade on weaker path as bounce back in greenback and fear of aggressive interest rate hike as mentioned by some fed officials prompted profit booking at higher levels.
Bullion counter is expected to trade on weaker path as bounce back in greenback and fear of aggressive interest rate hike as mentioned by some fed officials prompted profit booking at higher levels. Gold can face resistance near 52300 and dip lower towards 51900 levels. Yesterday July US consumer price index showed an uptick of 8.5% compared with the same month last year, while the reading came in at 0.0% versus June. The figures are down from the prior red-hot rise of 9.1% annually and 1.3% month-on-month in June. Minneapolis Fed Bank President Neel Kashkari said that he continues to believe that the U.S. central bank will need to raise its policy rate to 3.9% by year-end and to 4.4% by the end of 2023 to fight inflation. Chicago Fed President Charles Evans remained more hawkish than financial markets, expecting that U.S. rates will top out at 4% next year.
Copper can extend yesterday gains on supply concerns and on better Chinese import data as it can test 680 in domestic market. Stronger data includes China’s copper imports rising to 463,693 tonnes in July, up 9.3% from a year earlier as the sharp drop in prices triggered buying. Low copper stocks in LME registered warehouses are also supporting prices, along with cancelled warrants metal earmarked for delivery stood at 28% compared with 18% at the start of August. Meanwhile Zinc may remain on firm path as it can test 330 in MCX.
Crude oil can continue to remain mixed path as prices came under pressure due to increased US stockpiles but lower level buying can be seen. U.S. crude oil stocks rose by 5.5 million barrels in the most recent week, the U.S. Energy Information Administration said, more than the expected increase of 73,000 barrels. Gasoline product supplied rose in the most recent week to 9.1 million barrels per day, though that figure still shows demand down 6% over the past four weeks compared with the year-ago period. Natural gas prices can continue its bounce back as it can test 670 in MCX.
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