Bullions counter can trade on volatile path as it is track for a fourth consecutive weekly gain, supported by a weaker dollar and expectations of slower interest rate hikes by the U.S. Federal Reserve. Gold can move in range of 55800-56100 while Silver also can move in range of 68000-69500. Data on Thursday showed that U.S consumer prices fell for the first time in more than 2-1/2 years in December, offering hope that inflation was now on a sustained downward trend.
Bullions counter can trade on volatile path as it is track for a fourth consecutive weekly gain, supported by a weaker dollar and expectations of slower interest rate hikes by the U.S. Federal Reserve. Gold can move in range of 55800-56100 while Silver also can move in range of 68000-69500. Data on Thursday showed that U.S consumer prices fell for the first time in more than 2-1/2 years in December, offering hope that inflation was now on a sustained downward trend. Federal Reserve Bank of Philadelphia leader Patrick Harker said on Thursday that while the central bank needs to raise rates more to cool off inflation, it can probably do so at a much slower pace. Atlanta Federal Reserve Bank president Raphael Bostic said the inflation data may allow the Fed to scale back to quarter-point rate hikes at its upcoming meeting.
In base metal counter, Copper can remain on higher side as it can move in range of 765-772. The US Department of Labor released the December CPI data last night, which, together with core inflation, fell as expected. At the same time, the number of initial jobless claims released last week was lower than expected, showing that the labour market remains resilient. But the US dollar index fell sharply overnight, which was bullish for copper prices. In terms of fundamentals, smelters preferred to export amid higher copper prices in overseas markets. Zinc may move on firm path as it can move in range of 280-290. Aluminum can trade upside path as it can move range of 208-218.
ENERGY: Crude oil may trade on firm path as it can move in range of 6300-6500 in MCX. Oil prices slipped in early trade on Friday but were on track for gains of more than 6% for the week on solid signs of demand growth in top crude-oil importer China and expectations of less aggressive interest rate rises in the United States. Oil prices have also been buoyed by a slide in the dollar to a nearly nine-month low after data showed U.S. inflation fell for the first time in 2-1/2 years, reinforcing expectations the Federal Reserve would slow the pace of rate hikes. Natural gas prices can trade lower as it can move in range of 290-310.
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