Bullions counter may witness selling pressure as gold prices fell as a firmer dollar and worries of more interest rate hikes by the U.S. Federal Reserve clouded the outlook for non-yielding bullion. Gold can move in range of 55700- 56200 while silver also can move in range of 64600-65500.
Bullions counter may witness selling pressure as gold prices fell as a firmer dollar and worries of more interest rate hikes by the U.S. Federal Reserve clouded the outlook for non-yielding bullion. Gold can move in range of 55700- 56200 while silver also can move in range of 64600-65500. Two Fed officials said on Thursday the U.S. central bank likely should have lifted interest rates more than it did earlier this month, and warned that additional hikes in borrowing costs are essential to lower inflation back to desired levels. Money markets are now expecting benchmark rates to rise above 5% by May and stay at those levels through the year. Data from the Labor Department showed monthly producer prices accelerating in January. The producer price index for final demand rebounded 0.7% last month after decreasing 0.2% in December.
In base metal counter, Copper can trade mixed path in range of 770-785. On the macro front, the dollar rebounded overnight after economic data on Thursday and other reports this week showed that U.S. inflation remains strong and the economy remains relatively resilient in the face of Fed rate hikes. Zinc may trade with sideways path as it can move in range of 260-272. Aluminum can trade weaker path as it can move in range of 208-214. Fears of US interest rate hikes and economic recessions put commodities under pressure. After the decline in aluminium inventory when compared to Monday February 13 and the steady increase in downstream operating rates this week, there are signs of stabilisation in the fundamentals.
ENERGY: Crude oil may remain on weaker path as it can test 6350 while taking resistance near 6530. Oil prices were on track for weekly losses as strong U.S. economic data heightened concerns that the Federal Reserve would further tighten monetary policy to tackle inflation, a move that could hit fuel demand even as crude stockpiles grow. Oil prices have seesawed over the past weeks between fears of a recession hitting the United States amid inflation-fighting rate hikes and hopes for a pick-up in demand in China, the world’s top oil importer. The International Energy Agency (IEA) said this week that China would make up nearly half of this year’s oil demand growth after it relaxed its COVID-19 curbs, but restrained production by OPEC+ countries – members of the Organization of the Petroleum Exporting Countries and allies – could mean a supply deficit in the second half. Natural gas prices can witness lower level buying as it can move in range of 196-210.
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