Bullions counter may continue its upside momentum as yellow metal touched a 10-day high yesterday.
BULLIONS
Bullions counter may continue its upside momentum as yellow metal touched a 10-day high on Thursday as the U.S. dollar and Treasury yields slipped after the Federal Reserve signaled an end to its monetary policy tightening cycle. Gold can move in range of 62300-62700 while Silver also can move in range of 74500-76000. Fed’s dovish pivot was telegraphed over yesterday’s FOMC meeting and very pragmatically gave a green light for markets to price in a more aggressive Fed cutting cycle on the horizon. Lower interest rates decrease the opportunity cost of holding non-yielding bullion and weigh on the dollar. The dollar slipped to a four-month low, while the U.S. benchmark 10-year yield dropped to its lowest level since late July.
BASE METALS
In base metal counter, Copper can witness some bounce back as it can move in range of 722-735. London copper prices were steady on Friday following a big jump in the previous session as expectations of lower U.S. interest rates next year weighed on the dollar. Workers at Antofagasta’s (ANTO.L) Centinela copper mine in Chile have voted overwhelmingly to approve a new labor contract, their union announced on Thursday, averting a possible strike. The dollar languished near four-month lows, weighed by growing prospects of U.S. interest rate cuts next year, making greenback-priced metals cheaper to holders of other currencies. Zinc can move in range of 216-225.
ENERGY
Crude oil may trade on firm path as it may move in range of 5900-6100. Oil prices are on track to notch their first weekly rise in two months after benefiting from a bullish forecast from the International Energy Agency (IEA) on oil demand for next year and a weaker dollar. The dollar fell to a four-month low on Thursday after the U.S. central bank indicated interest rate hikes have likely ended and lower borrowing costs are coming in 2024. The European Central Bank, meanwhile, pushed back against bets on imminent cuts to interest rates on Thursday by reaffirming that borrowing costs would remain at record highs despite lower inflation expectations. World oil consumption will rise by 1.1 million barrels per day (bpd) in 2024, the IEA said in a monthly report, up 130,000 bpd from its previous forecast, citing an improvement in the outlook for U.S. demand and lower oil prices. Natural gas prices may remain on positive path as it can move in range of 190-210.
Disclosure
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