Bullions counter may continue to remain on weaker path as today FOMC minutes will give further direction to the prices. U.S. Treasury yields were boosted on expectations the Federal Reserve is not yet finished with its rapid monetary tightening cycle. Gold can move in range of 58600-59000 while silver also can move in range of 69000-70600
Bullions counter may continue to remain on weaker path as today FOMC minutes will give further direction to the prices. U.S. Treasury yields were boosted on expectations the Federal Reserve is not yet finished with its rapid monetary tightening cycle. Gold can move in range of 58600-59000 while silver also can move in range of 69000-70600. Gold on Tuesday dropped to as low as $1,895.50 an ounce, its weakest level since end-June, as benchmark 10-year U.S. Treasury yields hit an almost 10-month high, making them more attractive than non-interest-bearing bullion. Indicating investor sentiment toward bullion, holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, extended declines to their lowest since January 2020. No inflows have been reported since late July.
In base metal counter, Copper can trade on weaker path as it can move in range of 718-730. Prices for copper and other base metals fell in London on Tuesday, as the outlook for demand from top consumer China worsened after data showed slowing industrial output growth and falling property investment. Zinc may remain on sideways path as it can move in range of 208-225. Aluminum can move in range of 194-203. U.S. retail sales increased more than expected in July, suggesting the economy continued to expand early in the third quarter, helping to keep recession at bay.
ENERGY: Crude oil may continue to tad lower as it may move in range of 6650-6800. Oil prices edged down in early trading on Wednesday, extending losses from a 1% drop in the previous session, as the lingering impact of weak economic data from China, the world’s biggest oil importer, outweighed declining U.S. stockpiles. Crude inventories at the Cushing hub are seen to be falling to their lowest level since April. China’s economic activity data for July released on Tuesday remains the key bearish market driver, after retail sales, industrial output and investment figures failed to match expectations, fuelling concern over a deeper, longer-lasting slowdown in growth. The July activity data has prompted some economists to flag risks that China, the world’s biggest oil importer, may struggle to meet its growth target of about 5% for the year without more fiscal stimulus. Natural gas prices may further dip lower as it may move in range of 217-226.
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