Bullion counter can continue last week recovery on weaker greenback as investors will focus the U.S. inflation data scheduled tomorrow as it could influence the size of the Federal Reserve's next interest-rate hike. Gold (Oct) can recover towards 50700 while Silver (Dec) can recover towards 56500.
Bullion counter can continue last week recovery on weaker greenback as investors will focus the U.S. inflation data scheduled tomorrow as it could influence the size of the Federal Reserve’s next interest-rate hike. Gold (Oct) can recover towards 50700 while Silver (Dec) can recover towards 56500. The U.S. Consumer Price Index (CPI) data, due on Tuesday, is expected to show that prices rose at an 8.1% pace over the year in August, compared with an 8.5% print for July. Holdings of SPDR Gold Trust , fell 0.16% to 966.64 tonnes on Friday from 968.15 tonnes on Thursday. Meanwhile speculators cut net long position by 19,510 contracts to 1,217 in week to Sept. 6, while net short position increased in COMEX silver, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.
In base metal counter Copper can slip lower towards 640 while taking resistance near 660. The global refined copper market showed a 66,000-tonne deficit in June, compared with a 30,000-tonne deficit in May, the International Copper Study Group (ICSG) said in its latest monthly bulletin. For the first 6 months of the year, the market was in a 72,000-tonne deficit compared with a 130,000-tonne deficit in the same period a year earlier, the ICSG said. World refined copper output in June was 2.17 million tonnes, while consumption was 2.23 million tonnes. Bonded stocks of copper in China showed a 66,000-tonne deficit in June compared with a 34,000-tonne deficit in May. Zinc may trade in range 270-305 in MCX. Aluminum can also weaken towards 195.
Crude oil may witness some profit booking after recent recovery as prospect of further interest rate hikes in the United States and Europe to quell inflation and the strict imposition of COVID-19 restrictions in China. Crude oil can dip lower towards 6700 while taking resistance near 6950. For the first time in two decades, China’s oil demand could contract this year as Beijing’s zero-COVID policy keeps people at home during holidays and reduces fuel consumption. Lockdowns in key cities such as financial hub Shanghai already hurt China’s oil demand in the second quarter while recovery for the rest of the year is expected to be slow as China sticks to its zero-COVID policy. This could cap intake of the world’s top crude oil importer and dent global oil prices. Natural gas prices can trade with mixed bias as in range of 635-655.
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