Bullions counter may trade on subdued path as the dollar and Treasury yields firmed up. Meanwhile the U.S. inflation data cemented the case for a Federal Reserve rate pause next week.
DAILY MARKET NEWS AND OUTLOOK
Bullions counter may trade on subdued path as the dollar and Treasury yields firmed up. Meanwhile the U.S. inflation data cemented the case for a Federal Reserve rate pause next week. The U.S. dollar index and 10-year Treasury yields eased after a mixed report from the Labor Department on Wednesday showed that the annual rise in underlying inflation was the smallest in nearly two years, suggesting a Fed rate pause next week. Yellow metal can move in range of 58400-58700 while silver also can move in range of 70800-72300. Traders now see a 97% chance of the Fed leaving rates unchanged on Wednesday, but 40% probability of a rate rise in November, according to the CME’s FedWatch Tool. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.3% to 882.00 tonnes on Wednesday.
In base metal counter, Copper can move on upside path as it can move in range of 730-740. Over the weekend, copper inventories in Shanghai decreased by 3,800 metric tons to 71,300 metric tons, while inventories in Guangdong dropped by 2,800 metric tons to 9,500 metric tons. In Jiangsu, copper inventories increased by 1,000 metric tons to 6,000 metric tons, and Chengdu saw a rise of 200 metric tons to 800 metric tons. Shanghai and Guangdong witnessed lower shipment arrivals, while downstream stockpiling increased amidst falling copper prices. Zinc may remain on upside path as it can move in range of 220-230. Aluminum can move in range of 198-204.
Crude oil may continue its rally as markets turned their attention back to a tighter crude supply outlook for the rest of 2023 with demand set to stay robust through to next year. Overall it can move in range of 7300-7470. Saudi Arabia and Russia’s extension of oil output cuts to the end of 2023 will mean a substantial market deficit through the fourth quarter, the International Energy Agency (IEA) said on Wednesday, as it largely stuck by its estimates for demand growth this year and next. Elsewhere, the Organization of the Petroleum Exporting Countries (OPEC) on Tuesday retained its forecasts for robust growth in global oil demand in 2023 and 2024.Natural gas prices may remain on upside path as it can move in range of 220-230.
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