Bullions counter can trade with weaker bias as U.S. Federal Reserve signalled to more interest rates hikes next year. Gold (Feb) can dip lower towards 54000 while taking resistance near 54500. Silver (Mar) can move lower towards 67000 while taking resistance near 68500.
Bullions counter can trade with weaker bias as the U.S. Federal Reserve signalled to more interest rates hikes next year. Gold (Feb) can dip lower towards 54000 while taking resistance near 54500. Silver (Mar) can move lower towards 67000 while taking resistance near 68500. The Fed will deliver more interest rate hikes next year, even as the U.S. economy slips towards a possible recession, Fed Chair Jerome Powell said on Wednesday, arguing that a higher cost would be paid if the central bank does not get a firmer grip on inflation. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.1% to 911.56 tonnes on Wednesday. The European Central Bank is set to raise interest rates for a fourth straight time today.
In base metal counter, Copper can move on lower path as it can move in range of 698-715. On the macro front, the US Fed announced it would raise interest rates by 50 basis points and expects borrowing costs to rise by at least another 75 basis points by the end of 2023. In terms of fundamentals, the inventory in Guangdong has dropped for nine consecutive days, and the arrivals in Guangdong were low as smelters are still under maintenance. Besides, copper prices increased. The cargo holders were actively selling at high prices, forcing the downstream companies to accept the high premiums. Zinc may move on mixed path as it can move in range of 280-290. Aluminum can trade on sideways path as it can move in range of 207-215.
ENERGY: Crude oil may trade on sideways path traders weighed optimism over China’s demand outlook against the possibility of further interest rate hikes from global central banks. Overall it can move in range of 6200- 6400. International Energy Agency seeing Chinese oil demand recovering next year after a 400,000-bpd contraction in 2022. The agency raised its 2023 oil demand growth estimate to 1.7 million bpd for a total of 101.6 million bpd. U.S. crude oil stockpiles also rose by more than 10 million barrels last week, the most since March 2021, buoyed by releases from the Strategic Petroleum Reserve and as refiners reduced activity. Natural gas prices can continue its bullish momentum as it can test 565 while taking support near 520.
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