Bullions counter may witness some profit booking at higher levels it retreated from a safe-haven-driven rally, which sent prices to their highest since early-February, as traders more sought clarity on the financial sector after Credit Suisse became the latest focal point for fears of a banking crisis. Gold can move in range of 57700-58200 while silver also can move in range of 66200-67500.
Bullions counter may witness some profit booking at higher levels it retreated from a safe-haven-driven rally, which sent prices to their highest since early-February, as traders more sought clarity on the financial sector after Credit Suisse became the latest focal point for fears of a banking crisis. Gold can move in range of 57700-58200 while silver also can move in range of 66200-67500. Shares of Credit Suisse slumped by as much as 30% on Wednesday after the lender’s largest shareholder said it could not provide further support, just days after the collapse of U.S. banks Silicon Valley Bank and Signature Bank. Markets are now pricing in a 65% chance for a 25-basis-point hike at the U.S. Federal Reserve’s March meeting. Bullion is considered a hedge against economic uncertainties, although higher rates increase the opportunity cost of holding the non-yielding asset.
In base metal counter, Copper can trade on weaker path as it can move in range of 747-757. On the macro front, Credit Suisse’s stock prices plummeted after disclosing “flaws” in its financial report. Investors once again worried about a full-scale global banking crisis. Zinc may trade with subdued path as it can move in range of 252-260. Zinc prices dropped as active production among zinc smelters leads to pressure on supply. Aluminum can trade on weaker path as it can move in range of 201-206. Aluminum prices dropped as China’s aluminium production rose 7.5% to 6.74 million tonnes in January-February from a year earlier.
ENERGY: Crude oil may trade on mixed path as it can move in range of 5550-5800. Oil prices rose in early Asian trade on Thursday, clawing back some ground from more than one-year lows hit in the previous session as markets calmed somewhat after Credit Suisse was thrown a financial lifeline by Swiss regulators. On Wednesday, they hit their lowest levels since December 2021, having fallen for three straight days. Brent has lost nearly 10% since Friday’s close, while U.S. crude is down about 11%. Later on Thursday, European Central Bank policymakers are seen leaning towards a half-percentage-point rate hike as the euro zone economy is picking up strength and inflation is set to remain high for years. Higher interest rates can lead to depressed demand for oil as economic growth slows, but concerns of a deepening financial crisis for the banking sector could also weigh on oil demand. Natural gas prices can witness some short covering as it can test 215 while taking support near 202.
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