Bullions counter may trade on subdued path as traders assessed comments from U.S. central bank officials on interest rates staying high, while the US debt-ceiling debate and risk of a default curbed further losses in bullion. Gold can move in range of 60800-61100 while silver also can move in range of 72500-74000.
Bullions counter may trade on subdued path as traders assessed comments from U.S. central bank officials on interest rates staying high, while the US debt-ceiling debate and risk of a default curbed further losses in bullion. Gold can move in range of 60800-61100 while silver also can move in range of 72500-74000. However, U.S. central bankers on Monday signalled they see interest rates staying high and, if anything, going higher, given inflation that may be slow to improve and an economy showing only tentative signs of weakness. While gold is considered a hedge against inflation, rising interest rates dull the non-yielding bullion’s appeal. Market participants were closely following developments in the debt ceiling debate, with President Joe Biden and Republican House of Representatives Speaker Kevin McCarthy scheduled at 1900 GMT Tuesday for talks.
In base metal counter, Copper can remain on weaker note as it can move in range of 722-732. On the macro front, the US dollar retreated from a five-week high on Monday as markets awaited news from Washington on how to resolve the debt ceiling issue, which could force the US government to default, raising concerns. China imported 2.1 million mt of copper ore and concentrate in April 2023, up 11.6% on the year and 4.1% on the month. Zinc may also tad further lower as it can move in range of 224-234. Aluminum can trade on sideways path as it can move in range of 205-209. On the macro front, the US debt crisis is fermenting, and market panic still exists. Aluminium output continued to grow. The cost side has no support to aluminium prices.
ENERGY: Crude oil may witness short covering at lower levels as it can move in range of 5700-6000. Oil prices rose for a second day early on Tuesday, as U.S. plans to purchase oil for the Strategic Petroleum Reserve (SPR) lent support while raging wildfires in Canada fuelled supply worries. The U.S. Department of Energy said on Monday it would buy 3 million barrels of crude oil for the SPR for delivery in August, and asked that offers be submitted by May 31. Global crude supplies could also tighten in the second half as OPEC+ – the Organization of the Petroleum Exporting Countries and allies including Russia – plan additional output cuts. On the other hand, U.S. oil output from the seven biggest shale basins is due to rise in June to the highest on record, data from the Energy Information Administration showed. Natural gas prices trade on firm path as it can move in range of 186-200.
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