Bullion counter is expected to trade on sideways path amid mixed fundamentals. Decline in greenback and rise in US treasury yields may cap the downside.
Bullion counter is expected to trade on sideways path amid mixed fundamentals. Decline in greenback and rise in US treasury yields may cap the downside. Gold can move in range of 52100-52500 while silver cam move in range of 58600-60600. Data on Thursday showed U.S. producer prices unexpectedly fell in July. It came a day after news that consumer prices (CPI) were unchanged in July due to a drop in gasoline prices. San Francisco Federal Reserve Bank President Mary Daly said a 50-basis-point interest rate hike in September “makes sense”, given the recent economic data including on inflation, but that she is open to a bigger rate hike if data warrants.
Copper can extend recent gains as it can test 685 in domestic market. Data from the COMEX showed money managers were net short 17,715 copper contracts or 200,888 tonnes on Aug. 2, down 2,042 contracts from a week earlier. Switzerland-based Glencore Plc and other major traders have stopped supplying Chinese metals merchant Huludao Ruisheng over a brewing scandal about missing copper inventories in the port of Qinhuangdao. At the centre of the scandal is a storage site in Qinhuangdao that is holding only one-third of the 300,000 tonnes of copper concentrate that more than a dozen Chinese companies were financing. Meanwhile Zinc may remain on firm path as it can test 332 in MCX.
Crude oil can continue to its recovery but upside to remain capped as OPEC cuts its oil demand forecast. OPEC cut its forecast for growth in world oil demand in 2022 by 260,000 barrels per day (bpd). It now expects demand to rise by 3.1 million bpd this year. That contradicts the view from the IEA, which raised its forecast for demand growth to 2.1 million bpd, due to gas-to-oil switching in power generation as a result of soaring gas prices. The IEA raised its outlook for Russian oil supply by 500,000 bpd for the second half of 2022, but said OPEC would struggle to boost production. Natural gas prices can continue its bounce back as it can test 710 in MCX.
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