Bullions counter may trade on weaker path as yellow metal prices slipped, but were on track for a fourth straight weekly gain as expectations that the Federal Reserve will cut interest rates in September lifted bullion's appeal.
BULLIONS
Bullions counter may trade on weaker path as yellow metal prices slipped, but were on track for a fourth straight weekly gain as expectations that the Federal Reserve will cut interest rates in September lifted bullion’s appeal.
Overall gold can move in range of 73200 -73800 while silver also can move in range of 90000 -91400.
Markets see a 98% chance of a Fed rate cut in September, according to the CME FedWatch Tool. Non-yielding bullion’s appeal tends to shine in a low-interest rate environment.
Earlier this week, Fed Chair Jerome Powell said recent inflation readings “add somewhat to confidence” that the pace of price increases is returning to the central bank’s target in a sustainable fashion, suggesting a turn to rate cuts may not be far off.
BASE METALS
In base metal counter, Copper prices can trade on weaker path as it can move range of 823-832.
China’s economy grew slower than expected in the second quarter, suggesting weak demand since China consumes around half of the world’s copper.
Copper inventories increased in LME-approved warehouses, Comex warehouses, bonded warehouses in China, and warehouses designated by the Shanghai International Energy Exchange, further pointing to weak demand.
China’s refined copper production in June rose by 3.6% from the previous year to 1.13 million metric tons, with an average daily output of 37,667 tons.
Aluminium prices are expected to move in lower in range of 218-224.
ENERGY
Crude oil may trade on lower path as it may move in range of 6720-6850. Oil prices fell on Friday, setting up for a second weekly decline, as mixed economic signals weighed on investor sentiment and boosted the dollar.
The U.S. dollar index climbed for the second consecutive session after stronger-than-expected data on the U.S. labour market and manufacturing earlier in the week. A stronger greenback dampens demand for dollar-denominated oil from investors holding other currencies.
Natural gas can trade on lower path as it can move in range of 168-180.
China’s economy grew at a slower-than-expected 4.7% pace in the second quarter, official data showed, sparking concerns about the country’s oil demand.
Meanwhile the OPEC+ producer group is unlikely to recommend changing the group’s output policy, including a plan to start unwinding one layer of oil output cuts from October, three sources told Reuters on Thursday.
Disclosure
Globe Commodities Limited, Globe Derivatives and Securities Limited & Globe Fincap Limited are subsidiaries of GCML. Rolex Finvest Private Limited, A to Z Consultants Private Limited, A to Z Venture Capital Limited, M. Agarwal Stock Brokers Private Limited, A M Share Brokers Private Limited, Shri Adinath Advertising Company Pvt. Ltd., Orient Landbase Private Limited, Bolt Synthetic Private Limited, Price ponder Private Limited and Lakshya Impex Private Limited are associates of GCML. Globe Comex International DMCC is step down subsidiary of GCML.
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