BULLIONS

Bullions counter can trade on positive path as it climbed a near a nine-month high as a softer dollar and expectations of slower interest rate hikes from the U.S. Federal Reserve added to bullion’s shine. Gold can move in range of 56200-56800 while Silver also can move in range of 69000-70500. The Fed raised rates by 75 basis points (bps) four times last year, before slowing to a 50 bps increase in December. Most traders expect a 25 bps hike at the U.S. central bank’s next policy meeting on Jan. 31-Feb. 1. Investors will also keep an eye out for the U.S. retail sales data due on Wednesday. U.S. consumers are becoming more confident that price pressures will ease considerably over the next 12 months, their one-year inflation expectations falling in January to the lowest level since the spring of 2021.

BASE METALS

In base metal counter, Copper can remain on higher side as it can move in range of 765-772. On the macro front, economic data released showed that US inflation dropped more than expected, strengthening market expectations that the Fed will slow down the pace of rate hikes. The US dollar continued to fall, offering support to metals prices. Since the end of December, the copper inventory across China has increased for three consecutive weeks, and the inventory in all regions grew last week. Spot imports were scarce last week. The copper stocks were shipments from domestic smelters, and the poor downstream consumption mainly contributed to the increase in inventory. Zinc may move on firm path as it can move in range of 280-290. Aluminum can trade on upside path as it can move range of 214-222.

ENERGY: Crude oil may trade on firm path on optimism that China’s reopening will lift fuel demand at the world’s top crude importer. Overall it can move in range of 6400-6520 in MCX. The rebound in domestic demand is expected to lead to a 40% drop in China’s exports of refined oil products in January from December’s figure, led by gasoline. This week, the Organization of the Petroleum Exporting Countries and the International Energy Agency will release their monthly reports, closely watched by investors for global demand and supply outlooks. Natural gas prices can trade lower as it can move in range of 290-310. Although a sharp cold snap froze much of the US around Christmas, the number of gas-weighted heating degree days – a measure of energy demand – has been running 25 per cent lower than normal in January, according to the Energy Information Administration.

Disclosure

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