Bullions counter may remain on firm path as yellow metal rose supported by a softer dollar and escalating Middle East conflict lifting safe-haven appeal
Bullions counter may remain on firm path as yellow metal rose supported by a softer dollar and escalating Middle East conflict lifting safe-haven appeal, but were set for a second weekly fall as traders reassessed hopes for early interest rate cuts in the United States. Gold can move in range of 62100-62350 while silver also can move in range of 71500-72500. The United States and Britain launched strikes against sites linked to the Houthi movement in Yemen, while Saudi Arabia called for restraint in light of the strikes. Data showed U.S. consumer prices rose more than expected in December, but excluding volatile food and energy costs the pace of price increases fell to 3.9% from 4% on an annual basis, showing ongoing moderation in underlying price pressures.
In base metal counter, Copper can move in range of 715-722. On the macro front, the U.S. non-seasonally adjusted CPI recorded an annual rate of 3.4% in December and a monthly rate of 0.3%, exceeding expectations. Speak by Federal Reserve officials suppressed interest rate cut expectations. This is expected to weigh on copper prices. In terms of fundamentals, from the supply side, actual trading was weak after inventory increased, premiums continued to fall, and supply became ample. In terms of price, the timing of the Federal Reserve’s interest rate cut is expected to be postponed, but bets on the extent of interest rate cuts throughout the year have increased. The downside space for copper prices is expected to be limited. Aluminium may trade in range of 200-205.
Crude oil may remain on upside path as it may move in range of 6000-6150. Oil prices rose more than 2% on Friday as the United States and Britain carried out strikes against Houthi military targets in Yemen in retaliation for attacks by the Iran-backed group on shipping in the Red Sea starting from late last year. The benchmarks were adding to gains of nearly 1% from the day before, ensuring prices were on track for a second straight weekly rise. The U.S. and British strikes are one of the most dramatic demonstrations to date of the widening of the Israel-Hamas war in the Middle East since its eruption in October. Witnesses in Yemen confirmed explosions throughout the country. Natural gas prices may trade on volatile path as it may move in range of 250-270.
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