Bullions counter may trade on weaker path as the U.S. dollar edged higher, and investors positioned for a series of major central bank policy meetings this week, with a likely pause in interest rate hikes by the U.S. Federal Reserve. Gold can move in range of 59500-60000 while silver also can move in range of 72500-73800.
Bullions counter may trade on weaker path as the U.S. dollar edged higher, and investors positioned for a series of major central bank policy meetings this week, with a likely pause in interest rate hikes by the U.S. Federal Reserve. Gold can move in range of 59500-60000 while silver also can move in range of 72500-73800. The release of U.S. consumer price index and producer price index data on Tuesday and Wednesday, respectively, are also on investors’ radar, as a hotter CPI number could alter rate expectations. Fed fund futures show a 71.2% probability that the U.S. central bank will keep its benchmark overnight interest rate in the 5.00%-5.25% range when its two-day meeting ends on Wednesday.
In base metal counter, Copper can trade with weak bias as it can move in range of 715-725. Copper inventories in major Chinese markets added 2,500 mt from last Monday to 109,400 mt , down 1,700 mt from two Fridays ago. Inventories have fallen for five consecutive weeks. The increase in inventory in east China is mainly due to more customs clearance of imported copper, while the increase in inventory in south China is due to the large inflows of imported copper and poor consumption. On the demand side, as copper prices continue to rise and the price spread between copper cathode and copper scrap widens, copper cathode consumption will fall. Zinc may remain on subdued path as it can move in range of 211-217. Aluminum can trade sideways in range of 203-207.
ENERGY: Crude oil may witness some profit booking as it can move in range of 5650-5800. Oil prices edged lower on Monday ahead of a Federal Reserve meeting as investors try to gauge the central bank’s appetite for further rate hikes, while concerns about China’s fuel demand growth and rising Russian crude supply weighed on the market. Most market participants expect the U.S. central bank to leave interest rates unchanged when it concludes its two-day monetary policy meeting on Wednesday. The Fed’s rate hikes have strengthened the greenback, making dollar-denominated commodities more expensive for holders of other currencies and weighing on prices. Natural gas prices may trade with upside bias as it can move in range of 185-195.
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