Bullions counter may trade on weaker path as gold prices were lower, as the dollar firmed after data showing sticky U.S. inflation added to concerns that the Federal Reserve would persist with monetary policy tightening. Gold can move in range of 56300- 56700 while silver also can move in range of 65000-67000.
Bullions counter may trade on weaker path as gold prices were lower, as the dollar firmed after data showing sticky U.S. inflation added to concerns that the Federal Reserve would persist with monetary policy tightening. Gold can move in range of 56300- 56700 while silver also can move in range of 65000-67000. The U.S. consumer price index (CPI) increased 0.5% last month, in line with expectations. In the 12 months through January, the CPI increased 6.4%, which was the smallest gain since October 2021, but slightly higher than expected. Fed officials said on Tuesday the U.S. central bank would need to keep gradually raising interest rates to beat inflation. Money markets expect the Fed’s target rate to peak at 5.263% in July from a current range of 4.50% to 4.75%.
In base metal counter, Copper can trade on weaker path as it can move in range of 766-779. On the macroeconomic front, January inflation data showed that the U.S. consumer price index (CPI) recorded the smallest year-on-year increase since October 2021, but Fed officials remained hawkish about raising interest rates, pushing up the U.S. dollar index. Zinc may trade with weaker path as it can move in range of 268-268. Aluminum can trade on upside path in range of 210-218. Macro headwinds weighed on base metals. On the fundamentals, the long-awaited output reduction has not been enforced. And the social inventory has kept rising. The market is waiting to see when the demand will show strong recovery. It is expected that aluminium prices will remain range bound in the short term.
ENERGY: Crude oil may remain under pressure as it can test 6400 while facing resistance near 6570. Oil prices slipped after falling by more than $1 a barrel in the previous session as industry data pointed to a much bigger-than-expected surge in U.S. crude inventories. U.S. crude inventories rose by about 10.5 million barrels in the week ended Feb. 10, according to market sources citing American Petroleum Institute figures on Tuesday. Also weighing on crude prices was a U.S. Department of Energy (DOE) announcement this week that it would sell 26 million barrels of oil from the nation’s strategic reserve, which is already at its lowest level in roughly four decades. Natural gas prices can witness lower level buying as it can move in range of 205-220.
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