Bullions counter may witness some short covering at lower levels as yellow metal edged up from 5-month lows on Friday as the U.S. dollar and bond yields slightly fell from highs, but bullion was set for its fourth consecutive weekly decline on concerns over the Federal Reserve’s higher-for-longer interest rate outlook. Gold can move in range of 58250-58600 while silver also can move in range of 70000-71000.
Bullions counter may witness some short covering at lower levels as yellow metal edged up from 5-month lows on Friday as the U.S. dollar and bond yields slightly fell from highs, but bullion was set for its fourth consecutive weekly decline on concerns over the Federal Reserve’s higher-for-longer interest rate outlook. Gold can move in range of 58250-58600 while silver also can move in range of 70000-71000. U.S. 30-year yields also hit 12-year highs on Thursday, as strong economic data raised investor expectations that the Fed will hold interest rates higher for longer. The number of Americans filing new claims for unemployment benefits fell last week, pointing to continued tightness in the labor market even as job growth slows. Investors now await Fed Chair Jerome Powell to deliver a talk on the economic outlook on Aug. 25 at the central bankers’ confab held each year in Jackson Hole, Wyoming.
In base metal counter, Copper can trade on weaker path as it can move in range of 720-730. Net long positions of copper on the London Metals Exchange (LME) are at a six-month high, partly fuelled by low Chinese copper inventories data, but industry sources say this signal often as seen as bullish isn’t reflecting the reality on the ground. China is the world’s top copper consumer, and combined inventory in the Shanghai Futures Exchange and Chinese bonded warehouses were 110,314 metric tonnes on Aug. 11, down 53% year-on-year and equivalent to just under three days of consumption. Zinc may remain on sideways path as it can move in range of 205-215. Aluminum can move in range of 193-200.
ENERGY: Crude oil may remain under pressure as it may move in range of 6550-6750. Oil prices looked set to snap a seven-week winning streak on Friday as concerns about demand growth in China as its economy slows, and the possibility of higher for longer U.S. rates triggered losses. The U.S. Federal Reserve’s focus on containing inflation amid stronger-than-expected economic data was keeping a lid on oil prices. On Thursday, the U.S. Labor Department reported the number of Americans filing new claims for jobless benefits fell in the last week, suggesting the still-tight labour market could prolong the Fed’s tightening campaign to cool the economy. Natural gas prices may further dip lower as it may move in range of 215-223.
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