Bullions counter may trade on mixed path as yellow metal prices ticked down in light trade on Monday pressured by a stronger dollar, as investors assessed the path ahead for interest rates following hawkish remarks from U.S. Federal Reserve policymakers. Gold can move in range of 59200-59500 while silver also can move in range of 72000-73500.
Bullions counter may trade on mixed path as yellow metal prices ticked down in light trade on Monday pressured by a stronger dollar, as investors assessed the path ahead for interest rates following hawkish remarks from U.S. Federal Reserve policymakers. Gold can move in range of 59200-59500 while silver also can move in range of 72000-73500. U.S. stock markets will be closed on Monday for the Juneteenth holiday. Bullion posted a small weekly fall last week as traders ramped up bets for a July rate hike following the Fed’s hawkish pause after 10-straight hikes. Investors now await Fed Chair Jerome Powell’s congressional testimonies on Wednesday and Thursday for further cues on future rates.
In base metal counter, Copper can trade on lower path as it can move in range of 725-735. Copper inventory across major Chinese markets went down 4,800 mt from Monday June 12 and down 15,800 mt from two Fridays ago. The continuous reduction of warrants and limited arrivals of domestic and imported copper drove inventories in east China to fall sharply. High copper prices combined with high spot premiums is expected to weaken downstream demand. Zinc may remain on subdued path as it can move in range of 218-224. Aluminum can trade sideways in range of 202-207.
ENERGY: Crude oil may remain on volatile path in range of 5750-5950. Oil prices on Monday are also lower on expectations that the Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia, or OPEC+, will struggle to get compliance with production quotas. Fed officials struck a hawkish tone in their first comments since the central bank held the policy interest rate steady at its meeting last week. A number of major banks have cut their 2023 gross domestic product growth forecasts for China after May data last week showed the post-COVID recovery in the world’s second-largest economy was faltering. PBOC is widely expected to cut its benchmark loan prime interest rates on Tuesday, following a similar reduction in medium-term policy loans last week to shore up a shaky economic recovery. Natural gas prices may trade mixed as it can move in range of 205-216.
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